Gratuity

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 April 2012 Dear All,

Please give me some explanation about Gratuity, and what is % of contribution from employer and from employee ?

VIVEK SHARMA

VIVEK SHARMA (Expert)
Follow

01 April 2012 1) Employee does not contribute for gratuity, only employer contributes.

2) Upto 15 days of Basic+DA paid by employer to the employee is tax free for each years of service completed

3) Minimum 5 years of continuous service is required for gratuity.

4) Any payment beyond 15 days will be taxable.