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Payment of Gratuity Act, 1972 ????


Prabeer (B. COM (H) CA & CS Final)     04 November 2008

Prabeer
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Under the Payment of Gratuity Act, 1972 why 26 days are considered as one month in the formula (15/26 X Last drawn salary X Number of completed years of service or part thereof in excess of 6 months) for the computation of taxable amount of Gratuity?

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S.Srinivasaraghavan (Chief Financial Officer and Co)     04 November 2008

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52 sundays are deducted from 365 days and the balance is divided by 12 to arrive at 26 for the denominator. The numerator of course is half a month.

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Originally posted by :PRABEER SARKAR
" Under the Payment of Gratuity Act, 1972 why 26 days are considered as one month in the formula (15/26 X Last drawn salary X Number of completed years of service or part thereof in excess of 6 months) for the computation of taxable amount of Gratuity? "

 is that last drawn salary - gross , basic , net salary.
 

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Bala (CFO, Cogzidel)     05 November 2008

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All Sundays in a month are excluded from calculation and hence, 26 days in a month are considered to be working days. That's the reason for having the denominator as 26 days. 

Bala

www.cogzidel.in

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Prabeer (B. COM (H) CA & CS Final)     05 November 2008

Prabeer
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Thanks 2 All.

Jayesh G Khona (CEO)     02 June 2009

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If Gratuity is paid as per POGA 1972, What is the maximum amount payable as gratuity?.

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gurwinder singh (jagraon)     10 February 2010

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if my salary is 22000 basic pay       d.a 13200   gratuity calulation

amrish (Assistant Manager - F&A)     15 February 2010

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3.5 Lakh at the most....

Originally posted by : Jayesh G Khona
If Gratuity is paid as per POGA 1972, What is the maximum amount payable as gratuity?.

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B.S.Omkareshwar (CA-Final Student)     04 March 2015

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Maximum gratuity shall not exceed ₹10,00,000 Sec 4(3) POGA 72


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