Calculation of end of service wage (Gratuity)
I am working with the reputed company since 21st March, 2006 to 30th of April 2011(30th is my final day to leave), almost 5 years and 01 month and 9 days. My quotation is how they will calculate my gratuity? They may calculate for less than 5 years as 21 days for year or above 5 years as 30 days for year. Could you please advise anyone I am eligible for above 5 years? Or not.
From 21-Mar-2006 to 30-April-2011 1st Calculate no of Days = 1,866 Minus Total un-paid leave taken in 5 years for Example 25 Days =1,866-25=1,841 Days /365 Days
=5.04 * 21 Days
Total =5.04*21 = 105.92 Days
Now take your salary only basic will be taken in to a/c for Gratuity
For Example your Basic Salary is Qr.5000 / month
Convert in to Days =5,000/30 = 166.67
Now Finally Basic Salary per day multiple into number of Days Worked
= 166.67 * 105.92
=17,653.69 is your Gratuity.
Hope you understand
end of services benefits is 3 weeks worth of salary, per year,
it is only payable if you work for more than one year
easy way to caluclate
take monthly salary x 12 (months)
divide answer by 52 (weeks per year)
multiply answer by 3
the answer if your annual ESB, if u worked 18 months,
you multiply your weekly salary by 4.5 weeks.
hope this helps
by the way it was your latest basic salary only.
Any agreed leave period taken during services is counted as part of service as per Labor law. So your total tenure should be more than 5 years.
The Labor Law says "not less than three weeks gratuity for each completed year and a fraction thereof for a not completed year."
I doubt the leave/vacation you had taken during the 5 years will be count as part of the service period...your effective service period = (5 years - no of leave/vacation days during the 5 year service).. the rate vs the period (less than 5years or beyond 5 years) affect accordingly..