One of my employee completted 5 years, now how can i calculate gratuty, please let me know.
MANISH.M
(CA-Final )
(66 Points)
Replied 06 May 2011
For the Gratuity calculation the gratuity calculation formula is
1. basic/26 x 15 days x number of years of service
OR
2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS
Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company. The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.
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