Gratuity Calculation

hey buddy

a/c to me the formula for the thing u said above is

15/26* last drawn salary * completed years of service or part thereof in excess of 6 months

where salary = basic salary+ DA (whether forming part or not)

and that too is true only if the employee is covered under payment of gratuity act

if the employee isnt covered under payment of gratuity act

then the calculation is

1/2* Average monthly Salary * Completed Years of Service

Salary = Basic Salary + DA (if terms so provide) + Commission (based on fixed %tage of t/o)

Average Monthly Salary=  average salary of last 10 months immediately preceeding the month of retirement....

i hope now its a bit clear to u

moreover the period of service once is qualified i.e. 5 years of continuous service doesnt make any changes in calculation of exempted gratuity

I am providing herewith the calculation of gratuity

thanks its very nice and very helpful for convenient work

Regards

Abhishek Nanda

Thanks everyone for posting your views on this discussion.

One question - If a person has completed 4 years 9 months in an organization, will he be eligible to receive gratuity? How's an year calculated for Gratuity?

Thanks

Gaurav

hello team,

Need clarification on my case. my Gratutity joining date is 01.08.2006 and i have been transfered to same group company wef 01.11.2010. i.e i have service for 4.3 years.

my query is, the gratuity will be continuing to new company and considered total 7 year of my service or only 2.8 years in new same group company.

Thanks in advance. please clarify my query.

Regards

Prabu