Hi Ludymar,
No registration is required. Your company automatically comes under the purview of The Gratuity Act as soon as you cross the employee count of 10.
Thanks & Regards
Anand Christopher
Chief Mentor
8089946456
Stay Safe … Stay Compliant …
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Hi,
Please go through these links and try to understand the complete ABCD of Gratuity Act, Practical Process etc.
https://economictimes.indiatimes.com/wealth/invest/how-to-calculate-gratuity/articleshow/61913387
https://www.greythr.com/wiki/acts/payment-of-gratuity-act1972
After this you will have to understand the amendments of 2018.
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Dear Ludymar,
Notice of opening in Form A to be sent to concerned jurisdictional officer for gratuity and further changes if any in Form B.
Regards,
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Hi Payofkoc,
Thank you.
So which formula must we use?
Gratuity = nb 15 / 26
Gratuity = (15 × last drawn salary × working tenure)/30.
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Dear HRReliableGroup & @Sree,
What is the best computation approach for a company doing accruals for gratuity?
Thank you for reverting
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Hi Ludymar,
The formula will be (Last drawn Basic + DA) * 15 * (Yrs in service)/26
Thanks & Regards
Anand Christopher
Chief Mentor
8089946456
Stay Safe … Stay Compliant …
2 Likes
Being the pvt ltd company, we don’t have DA.
Gross=(Basic+HRA+Other Allowance)
We calculate “Gross-HRA15(Yrs in service)/26”.
Is this correct?
Also pls let me know, we calculate notice period recovery on Gross. Is this comes on Gross or Basic?
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It is wrong.
For Gratuity calculation, only Basic + DA is taken. If there is no DA in your company then only Basic will be taken for the calculation of Gratuity.
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Hi
I completed 4 years and 312 days in my previous organisation. But i was unaware of this rule of gratuity (even after completing 4 years 240 days you are eligible for claiming gratuity). Now is it possible for me to recover the same from my previous employer? If yes, what will be the process for the same?
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According to the Gratuity Act 1972, an employee is eligible to receive a gratuity amount after completing five years of continuous service at one organisation . The gratuity amount is paid to the employees once they retire, resign, or are laid off
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Yes, you are eligible for gratuity as you have completed 4 years and 240 days. You can file Form N to determine your gratuity and claim. Submit Form N to the Controlling Authority under PGA, ie, Dy Labour Commissioner of your jurisdiction immediately. Prescribed formula for gratuity is last drawn salary ie, monthly salary x 15 x no. Of years of service / 26.
26 days is reckon both for pay and length of service. In your case your length of service is 6 years.
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Is the duration 4 years 280
days includes notice period as well. My organisation have 3 months notice period. Does that mean if I submit my papers after 4 years 5 months and served the complete notice period am I eligible for gratuity ?
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