gratuity

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Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2010 what is the minimum amount of gratuity, if any, that has to be given to employee by employer.

Mahesh Babu

Mahesh Babu (Expert)
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04 February 2010 if an enterprise is covered under The Payment of Gratuity Act, then the minimum amount of Gratuity payable is 15days salary for every completed year of Service.
where Salary = Basic + DA
if service is for a period of 6 months or more in any year then it is considered as 1 year.
Gratuity = 15/26*Salary * no. of years of services completed