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Payroll:India Termination:factor for retira; benefits

Former Member
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Can anyone tell me in termination: maintain calculation factor for retrial benefits:- FACTOR column value how we put there? is there any calculation make for that?

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raghu_c
Active Contributor
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In this the calculation factor used to calculate the employee's retiral benefits such as superannuation or gratuity are mentioned. These benefits are paid according to the employee's duration of employment and the calculation factor is decided as per the company's policies.

For Ex: As per gratuity act, minimum years of service to be eligible for gratuity is 5Yrs, and the calculation is at 57.69% of the current basic, so you can maintain factor accordingly

Raghu

Former Member
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Dear Mr. Raghu, I appreciate your answer, but in example you took gratuity this 57.69% (suppose) how you calculate this. because while calculating the formula is LAST FIFTEEN DAYS SALARY/26DAYS15NO.OF YEARS SERVICES. So please can you explain little more.........thanks in advance

raghu_c
Active Contributor
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gratuity is calculated as {(Last basicpay drawn)15/26} No of Years of service

Raghu

Former Member
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yes you are right mr. raghu, but i want to know how we put in FACTOR numeric value on which base?

raghu_c
Active Contributor
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ys as a numeric value

raghu

Former Member
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Ok mr. Raghu, suppose a EE basic salary is Rs.10,000./- and getting Gratuity on retirement after 10 year continue service, So wht will be the factor value? i m very thankfull to u, if u explain in detail....

raghu_c
Active Contributor
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5769 will be the factor

Raghu

Former Member
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Mr. Raghu, how u calculate it?