Gratuity calculation

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shweta

shweta (Querist)
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10 October 2009 Any calculation for gratuity calculation ???

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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11 October 2009 ??

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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11 October 2009 Sec 4(2) of Payment of Gratuity Act, 1972.
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen daysâ€™ wages based on the rate of wages last drawn by the employee concerned :

Wages menas as per Sec 2(s)

(s) â€œwagesâ€ means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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11 October 2009 So if an employess worked for 5Yrs 7 months,and his last drawn Salary
( Basic+DA) is 30,000 pm

Gratuity as per Act will be:

15 days Salary for 6 Yrs or effectively 3 months Basic + DA will be the gratuity amount.