Calculation Of Gratutity - Xls Download

Dear All,
As per the Gratuity Act. he is eligible to get the gratuity amount only after the completion of 5yrs of continous service in the organisation, but if the employee completed 4yrs 4 month and 17 Days and he is leaving the company,Is he eligible for gratuity?
How will we calculate the amount??

Hi Pooja,
He is not elgible for gratuity, if the person is working from 4 yrs 11 months 30 days also not elgible, the person has to finish his 5 yrs of service with organisation then he is elgible for gratuity.
with regards,
Ramesh.V

Hello Members,
Do all the organisation should amend gratuity compulsorily or it is optional? Kindly clarify.
Sense

Hey Pooja!
Though as per gratuity act, one should complete 5 years of continuous service; if one has completed 4 years & 240 days he/ she is eligible for gratuity.
Formula for gratuity calculation:
Basic*15/26* no. of years
e.g. : Basic = Rs. 10,000/-
No. of years = 15 years
Gratuity = 10,000*15/26*5
= Rs. 28,846.15/-

Dear Friends,
I think Pravinaa is right only thing i wanted to get it clarified is in the fifth year it should be 240days of service should be completed according to me. Friends can anyone of you clarify me on the same.
I have also attached one excel file containing samples of Gratuity calculation, hope it will be of some use for you all.
Thanks & Regards
Amith R.

Hi Parveena,
If you said that Formula for gratuity calculation is as given below then why in the example u have taken no. of years 5 instead of 15?
Basic*15/26* no. of years
e.g. : Basic = Rs. 10,000/-
No. of years = 15 years
Gratuity = 10,000*15/26*5
= Rs. 28,846.15/-

[Pooja,
Employee has to complete 5 yrs of service then only he/she will be eligeble for gratuity... 4yrs 4 month and all is not applicable

Hiiiiii,
As per the Payment of Gratuity Act, an employee must serve 5 years or more to become eligible for the Gratuity either on resignation or termination.
Regards,
Om Prakash

In gratuity act,is continous service also includes the leave taken by the employee.i mean if an employee complete its 5 yrs bt during this period he take let 40 or 50 leave than he is liable for the gratuity.plz tell if sum1 know this

Dear Friends,
On the above subject, i have a doubt, if an employee has completed 5 year of service but, for example, in the 2nd year he put up less than 240 days continuous service. Will he get gratuity for 5 year or 4 years.
Clarification please.
Gajraj