Gratutiy calculations
Gorthi
(Querist) 23 January 2014
This query is : Resolved
Dear All,
Please confirm the following calculations for Gratuity is correct or not.
Last Drawn salary /26 * 15* Number of Years in service.
I am sure it was correct till Oct'12 however there is amendment to Gratuity Act in Nov'12 by changing the 15 days to 30 days but not sure date of effect and status for FY 2013-14.
Appreciated for your earlier reply.
V R SHROFF
(Expert) 23 January 2014
Academic Query
Advocate M.Bhadra
(Expert) 23 January 2014
This information has taken with obliged from www.ca-lecture.com
Gratuity calculation formula for employees receiving monthly salary
(15/26) * Last Salary Drawn * Completed years of service
Gratuity calculation formula:
last salary(Basic+DA)/26*30*no.of years service=total Gratuity
When calculating completed years of service , if an employee worked for more than 6 months , it will be considered as full year .
Example : Employee worked for 14 years and 7 month , then completed years of service = 15 years
Example: Employee worked for 14 years and 5 months ,then completed years of service = 14 years
Example: Employee worked for 14 years and 6 months, then completed years of service = 14 years
Kumar Doab
(Expert) 23 January 2014
It is felt that :
Bill No. LI of 2012
THE PAYMENT OF GRATUITY (AMENDMENT) BILL, 2012
A
BILL
further to amend the Payment of Gratuity Act, 1972
tabled in Rajya Sabha by (Shri Rama Chandra Khuntia, M.P.) has not received the assent of The President of India and no Gazette notification has not been released.
If it has been the reference to the copy may pls be provided.
It is certainly for the benefit of ‘Employees’.
If the bill is passed with retrospective effect certainly many employees shall benefit from it.
It could be one of the reasons that it is not tabled/ supported by major Political Parties and/or employers are protesting therefore the bill is not thru.
Isaac Gabriel
(Expert) 24 January 2014
Expert Kumar Doab is right.The bill was not paseed.
Kumar Doab
(Expert) 24 January 2014
Therefore you may calculate as:
(Basic+DA)/26*15*no.of years service
{(Basic+DA) as per last drawn salary}
You may also keep a watch and if the bill is passed with retrospective effect you benefit from it.
Rajendra K Goyal
(Expert) 24 January 2014
Well advised by the expert Kumar Doab ji, agree to it.
T. Kalaiselvan, Advocate
(Expert) 25 January 2014
I too endorse expert Mr. Kumar Doab's opinion on the subject. The amendment has not been passed as to yet.
