Gratuity Payment - Company Procedures

i have a question that if an employee has completed his 5 years in a software company now he want to resign how he get his gratuity amopunt i mean weather the amount is paid by company or government.and for the same what is the procedure should do that employee..please explain me the proper step for getting gratuity amount...

Dear Friend,
Gratuity this word came from gratitude, in other words employer pays to employee for his loyalty of service towards company, and it will be paid at time of resignation or retirement. If an employee completes 5 years of continuous service he is eligible for this payment. As per statutory concern it is mandatory to pay for companies after the eligible criteria under the Gratuity Act 1972.
It is calculates on last drawn Basic pay /26 days X 15 Days X Number of years worked. Gratuity is Exempted U/s 10 as per Income Tax Act up to Rs. 10, 00,000/-. Earlier it was Rs. 3, 50,000/-.

For the Gratuity calculation the gratuity calculation formula is
1. basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS

Formula for calculating Gratuity payment is as follow.
Last Basic*15*No.of years Service/26

Dear,
Gratuity is stautory and Organizatio is responsible to manage their funds for allocating Gratuity ...........there are several organizations for this.....You can go with LIC too. In case if you have not done with and any of your employee has completed 5 yrs of service then you are liable to pay him the amount of Gratuity out of your own (Company's) expense....

Hai
Gratuity will be paid by the Company only. You must complete five years of service when resigned your job. It will be paid within a month period if delay they can pay simple interest.
MANOKAVIN

The formula mentioned by our friend Mr. Tellikapalli for calculating Gratuity is right.
Vasant Nair

The formula for calculating Gratuity mentioned by our friend Mr.Telikepalli is correct. Only, it is Basic+DA that is taken into account for calculation purposes.
Vasant Nair

Hi - There is two way of getting Gratuity.
1. If Company as is know Gratuity Trust, Then LIC of India or other Institution ( with whom company hold Gratuity account, Will the money to Company's Gratuity Trust and trust will pay the money to Employee's who have completed 5years of Service with Company.
2. Company will send a request to Institution to issue a cheque in favour of your name and which will delivered to you.
In both the scenrio, the time gap will more than 90 days from the date of Last work day.
It will be paid only on exit from company.
Employee no need to take action in this regard. Only inform your company whether you have received Gratuity from your Previous Employer ETC for Taxation purpose.

Dear Friends,
Don't get confused, well all friends given the correct calculation but the method of telling mean teaching is a little bit difficult for new learners, out of all MR Ganesh Chavan has given the correct way of calculating the gratuity, in other mean i am just amending the the formula by adding the Brackets.
The Formula for Calculating Gratuity Payment is as under:
1. (Basic/26)*15 days*number of years of service
For Example: (10,000/26)*15*5 = 384.6154*15*5= 28846.15
Total Gratuity Amount is 28846.00
OR
2. (BASIC+DA/26)*15Days*No. OF YEARS WORKS
For Example: (10,000+1000/26)*15*5 = 423.0769*15*5= 31730.77
Total Gratuity Amount is 31731.00
Gratuity is calculated only on Last Basic or Basic+DA as company has the pay structure
Thanks
With Warm Regards
Nandan Singh Negi
09718189207