Gratuity calculation
This query is : Resolved
11 October 2009
??
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 days’ wages based on the rate of wages last drawn by the employee concerned :
Wages menas as per Sec 2(s)
(s) “wages†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.
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 days’ wages based on the rate of wages last drawn by the employee concerned :
Wages menas as per Sec 2(s)
(s) “wages†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.
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.
( 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.
11 October 2009
15 days of salary for every year is to be calculated for Gratuity
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