Gratuity calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Dear Sir
Please correct me if the formula is incorrect. I have calculated for gratuity for one of the employee resigned from the service, his total no.of years of work is 7 years. Now the company will be payable gratuity to him.

Basic salary * 15 * No.of Years of service / 26

Its an urgent. Please reply

Thanks in Advance

Guest

Guest (Expert)

12 June 2014 yes u are right

basic salary/ 26 * 15 *7

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014
Thank you Sir

.

Guest

Guest (Expert)

12 June 2014 your welcome dear friend....................Good luck Dost

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Sir One more thing

The total years of service is 7.4 Years(7 years and 4 months).
So how can I taken this 7 years OR 8 years of service.

Thanks

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

12 June 2014 if months are more than 6, then only you can take 8 year, else 7 years will be count.
also one more thing to be noted, you have divided by 26, this is only when ur co is registered under gratuity act.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Thanks Mr.Arun Saboo
If our Co.is not registered under gratuity Act. Then how to calculate instead 26?

Thanks

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

12 June 2014 it must be divided by 30, and fraction are not allowed. i.e. if service period in 7 year and 7 month, still gratuity for 7 years to be paid and not for 8 years.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2014 Thank you Mr.Arun Saboo

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

12 June 2014 welcome dear, pleasure to help u.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now