Gratutity rate

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Karthick Subramanian (Querist)
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22 July 2008 In most of the cases gratuity is deducted @ 4.81% of basic. why the rate is taken as 4.81%. was it anywhere mentioned under the payment of gratuity act?
if yes, under which section?

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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12 July 2012 Gratuity is applicable to those emoloyee who have completec continues 5 or more year services. They should worked 240 days in every year. Gratuity is payable 15 days per every working years. is any employee worked more then 6 month then count it as full year and if less then 6 month then avoid it in calculation

Gratuity = Basic Salary / 26 * years of service * 15 days
i.e. if Mr X was working since last 8 years and 7 month and he left the service and his last basic was 6000/- per month then
Gratuity amount = 6000/26*9*15
= 31154