How to calculate salary in case of gratuity payment

Pravesh Kumar (Still Learning) (163 Points)

14 December 2011  

As per my knowledge Gratuity calculation formula is :

Salary x 15 / 26 x no. of years worked

 

I just wanted to know as per law how to calculate

1) Salary --- (Wheather it is last drawn salary or average of last 10 month salary or something else)

2) No. of Years worked (Suppose a person worked for 4 years 11 months his applicability can we say this is 5 Years  or suppose a person worked for 5 years 3 months can we say this is 6 years like this how to roundoff the years of service)

 

Please reply

Thanks