Graduaty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2010 i want to know about graduaty calculation and when it is applicable ? is it must to pay this above mention amt. by employer to employee ?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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23 September 2010 You are talking about "Gratuity".

When an establishment has 10 or more employees, it is covered under the gratuity act.

Its must for an employer to pay gratuity to its employer.

The minimum condition is 5 years of continuous service.

However, the above limit will not apply in case of termination or death of the employee.

Calculation : (Last drawn monthly basic salary) X 15 X (No. of years or part above 6 month of completed service ) / 26

However, in case of death... the no. of years in service will be taken as if he would have continued till his/her retirement age.