How do you calculate Gratuity?

Showing Answers 1 - 15 of 15 Answers

hello friends,

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity= Basic+D.A.   X 15
                                        26 


This is the formula to calculate the gratuity.

chintamani

  • Jun 1st, 2008
 

Gratuity is computed as below:
under Payment Act:
Under Sec 10(10) of IT Act

Actual Gratuity Received
Less Exemption under sec 10(10)
1. 15/26*completed year of service*10 months average salary
2. Actual Gratuity received
3.Max 350000
Among these which is least is eligible for exemption

Gratuity computation if employee is resigned,terminated or retired
Actual Gratuity Received
Less Exemption under sec 10(10)
1. 1/2*10 months average salary*completed year of service
2. Actual Gratuity received
3.Max 350000
Among these which is least is eligible for exemption

hello friends,

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity= Basic+D.A.   X 15
                                        26 


This is the formula to calculate the gratuity


Sachin P. Jawalekar

sachinlad

  • Sep 16th, 2009
 

Gratuity Calculation :

Gratuity=Last Basic Pay*15 Days* Number of Year Service
               -------------------------------------------------------------
                                             26 Days

Vaibhav Jain

  • Aug 8th, 2011
 

Is incentive added on basic salary?

  Was this answer useful?  Yes

Shruti Jain

  • Oct 17th, 2011
 

Cover under Gratuity act 1972
Least amount will be exempt
=15/26*last basic pay* no of years service
*no of years service= year + more than 6 month will count as 1 year
= 10 months average salary
*salary= basic+ DA
= 100000 Lacs
= actual amount received

  Was this answer useful?  Yes

sai krishna

  • Dec 14th, 2011
 

Gratuity= Last Basic Pay*15 Days
-------------------------------------------------------------
Number of Year Service* 26 Days

  Was this answer useful?  Yes

tejbhan pandey

  • Mar 21st, 2012
 

last basic+D.A*15*no of year of service /26
more than 6 month of service is calculated as next year
less than six month of service is calculated as previous year
like: 5 year 8 month will be treated as 6 year

  Was this answer useful?  Yes

Pranali Raut

  • Apr 12th, 2012
 

Last drawn Salary * 15 days / 26 days * no of years

  Was this answer useful?  Yes

bharat ahir

  • Jul 12th, 2012
 

if the employee completed 4 years 4 month any 17 day and he is leaving the company is he eligible for gratuity?

  Was this answer useful?  Yes

venkkatish.ps

  • Aug 7th, 2012
 

If company is registered under gratuity act 1972 then formula is " last drawn basic salary*15/30 * no of years served....if its not registered then formula is " last drawn basic salary*15/26*no of years served."..........Note: Ee should serve for minimum 5 years and years in which minimum 240 working days are there, such years are only considered.........for eg: he served for 5 years but only in 3 years he or she has worked for min 240 days, then instead of 5 years, we consider as 3 years in formula.......upto 10 lakhs there is no tax for gratuity.........

  Was this answer useful?  Yes

nitin

  • Oct 10th, 2012
 

no he is not eligible the eligibility criteria for gratuity is 5 years

  Was this answer useful?  Yes

Monalisa

  • Aug 7th, 2013
 

Gratuity is paid to all such employees after their resignation or retirement.Incase of resignation gratuity is paid to such employees who have completed 5 years of service.
Calculation of gratuity-Basic+DA*15/26*Total no. yrs service
15- Half month
26- Excluding 4 sundays

  Was this answer useful?  Yes

KRISHNA

  • Jun 4th, 2014
 

GRATUITY=((BASIC+DA)/26)*15*YEARS OF WORKING

  Was this answer useful?  Yes

Give your answer:

If you think the above answer is not correct, Please select a reason and add your answer below.

Answer Question

Click here to Login / Register your free account


 
Send   Reset

 

Related Answered Questions

 

Related Open Questions