I joined BACS on 21st January 2008 and my last working day was 7th Mar 2011. The company used to deduct 4.81% of Basic each year and show it in the CTC. My query is what amount of Gratuity I should have received - as per the company's calculation or the basic formula?
Below are the clarifications I received from my company relating to Gratuity payment. I would like to know if the company's calculations are correct or should the payment be made as per formula Basic*15*(number of years)/26. Please advise. URGENT
Ø Please be informed that for legacy BACS associates who are on the roles of the company as on 31st March 2009, Ex-gratia (TaxableGratuity) is paid if the associate leaves organization in less than 4 years 240 days.
Ex-gratia is calculated as follows – 4.81% on their accumulated Basic from the Date of Joining till your Last Working Day.
Ø The calculation of Basic*15/26*no of years is as per the Provisions of the Gratuity Act who completes 4 years 240 days of service with the company. Since your hire date is 21st January 2008 you will not be eligible for Gratuity Payment
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