Gratuity Formula – E SBH Gratuity

Gratuity is given by the employer to his employee for services rendered by her/him during the period of employment – Payment of Gratuity Act 1972

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Gratuity Formula

GRATUITY ENHANCEMENT CALCULATION SHEET

Name in Full				:
PF Code					A00000
Address in Full				:	XXXXXXXX
					YYYYYYYYYY
					ZZZZZZZZZ
Department where last employed				:	HO
Post last held				:
Date of appointment				: D-M-Y	2/10/1979
Date and cause of termination				:	NA
Date of retirement				:D-M-Y	7/31/2015
Total Period of Services				:	YEARS	36	MONTHS	5	DAYS	21
Amount of wages last drawn			NEW	OLD	PSB (8B)	26	TOT YEARS :		30	6
		BP	54410		PSB (8B)	26	ABOVE 6 MONTHS		30	6
*FPA COMPONENT		FPA*	1460		(Months > six months to be rounded of for 1 year as per Act
		PQA	670		ADDITIONS IN THIS CALCULATION SHEET 1. NOW RETIRES<30 YRS OF SERV. CAN CALCULATE DIFF. GRATUITY. 2. PUNJAB & SIND BANK OFFICERS COVERED UNDER 8(B) ADDED. 3. SPECIAL PAY AND DA ON SP HAS BEEN ADDED IN CLACULATION (B,C,D)
		DA	18561.96
		SP.PAY		0
		DA ON SP
		TOTAL	75101.96

A. GRATUITY AMT PAID UNDER REGULATION OSR 1979 REFD WITH OFFICERS SERVICE REGULATIONS 1979

	Basic pay drawn as on the date of leaving bank’s service +FPA+PQA							PAY	=Rs.	56540
	BP:	54410	FPA:	1460	PQA:	670
	Calculation of Gratuity under Regulation
1	Upto 30 years of service = (Pay X15)				(BP+FPA+PQA)		(56540	X 15)	=Rs.	848100
2	For additional over 30 years of service				PSB (8B)	(BP+DA*6)	(75102	X 6)
	Pay X additional completed years of service (No. of Years)						(56540	X 6)/2	=Rs.	169620
	= Pay X years/2 (Rs. /2)			PSB (8B)	(BP+DA15/26N)		(75102	X 26 X 15)/26
3	For additional no. of Months			(=Rs. X M /24)			(56540	X 5)/24	=Rs. *	0
4	For additional no. of days			(=Rs. X DAYS /(365*2))			(56540	X 21)/2X365	=Rs. *	0
	Total Amount Paid					Only in case months are > 6*			=Rs.	1017720

B. Calculation of Gratuity under The Payment of Grauity Act 1972.

Basic pay drawn as on the date of leaving bank’s service +FPA+PQA+DA@								=Rs.	75101.96
BP	54410	FPA	1460	PQA	670	DA	18562

Calculation of Gratuity under The Payment of Grauity Act 1972.
TOTAL WAGES=TW			TOT YRS	36	years>30	6
Total wages X15/26X Years upto 30) =TWx15/26X30					(75102	X 30 X 15)/26		=Rs.	1299842
TW X15/26X Years beyond 30) = TWX45/26xyrs>30					(75102	X 6 X 45)/26		=Rs.	779905
(Period beyond six months are to be rounded of , of as per Act)
			Total amount payable as per act					=Rs.	2079747
			(subject to ceiling of Rs.3.50 lacs)				CEILING		1000000
Rupees	2079747	was paid to me, being the higher amount of the two above

C. Correct Calculation as per OSR

Basic pay drawn as on the date of leaving bank’s service +FPA+PQA+DA@								=Rs.	75101.96
BP	54410	FPA	1460	PQA	670	DA	18562
Calculations as per Formula :			TOT YRS	36	years>30	6
	Total Wages X15= (For first 30 Years)					(75102	X 15)	=Rs.	1126529
	Total WagesX1.5XN		(For beyond 30 years			(75102	X 6 X 45)/26	=Rs.	779905
(Months above six months are to be rounded of for a complete year as per Act)
			Amount Payable					=Rs.	1906434

OR – Calculations as per Formula

Total wages X15/26X Years upto 30) ‘=TWx15/26×30					(75102	X 30 X 15)/26		=Rs.	1299842
Total wages X15/26X Years> 30)’=TWx45/26xN					(75102	X 6 X 45)/26		=Rs.	779905
	(N for years beyond 30 years)						TOTAL	=Rs.	2079747
(Months > six months are to be rounded of for a complete year as per Act)

D. CORRECT CALCULATION OF PAYBLE AMOUNT OF GRATUITY AS PER GPA 1972

As per the Formula :		TWxDAYS/26xNO. OF Years (wages includes				BP+FPA+PQA+DA
		(Beyond 30 years 45 days salary after every year, one month
		is equal to 26 days – amount comes more than the formula adopted by bank.

Basic pay drawn as on the date of leaving bank’s service +FPA+PQA+DA@
BP	54410	FPA	1460	PQA	670	DA	18562	=Rs.	75101.96
			TOT YRS	36		years>30	6
Total wages X15/26X Years upto 30)				=TWx15/26×30		(75102	X 30 X 15)/26	=Rs.	1299842
Total wages X45/26X Years beyond 30)				=TWx45/26xyears> 30		(75102	X 6 X 45)/26	=Rs.	779905
(Period beyond six months are to be rounded of , of as per Act)
					Amount Payable			=Rs.	2079747
		(subject to ceiling of Rs.3.50 /10.00 lacs as the case be)					CEILING		1000000

Therefore correct gratuity payable is Rs.				2079747	i.e. higher of gratuity payable under OSR

Therefore, the difference payable is as under					*(In view of Ceiling, enterthe amount as applicable )
			Total amount payable			=Rs.	2079747	*
			Amount Paid			=Rs.	1017720	*
			Difference payable			=Rs.	1062027

NOTE:

1	THIS SHEET IS MEANT FOR CALCULATION OF GRATUITY ENHANCEMENT DIFFERENCE PAYABLE ONLY
2	VERIFY AND TALLY THE GRATUITY AMT RECEIVED WITH THE SHEET BEFORE SUBMITTING TO YOUR BANK OFFICE
3	DISCREPANCIES, IF OBSERVED, BE REPORTED TO ADMIN IMMEDIATELY FOR CORRECTION IN SHEET
4	THE CALCULATED AMOUNT MAY VARY FROM BANK TO BANK.
5	THE SAMPLE FOR USING THE CALCULATION IN CLAIM LETTER (FORMAT GRATUITY CLAIM.DOC) IS ALREADY IN GROUPS.
6	THIS SHEET CAN BE IMPROVED FURTHER WITH MEMBERS SUGGESTIONS/GUIDANCE REGARD. OSR / GPA ACT 1972.
7	PSB OFFICERS COVERED UNDER 8B CAN GET MAXIMUM FOR 32 YEARS GRATUITY (6+26) AS PER OSR. NOW ADDED