Posts tagged "Gratuity Calculation"

Gratuity Calculation

As per the Indian Gratuity Act (Payment of Gratuity Act 1972), an employee should complete minimum 5 years in the organization to become eligible for gratuity. The training period of trainees /Apprentices appointed under the certified standing orders /Apprentice act will not be counted for determining the eligibility period.

Any recent amendments may be checked as I am not working in India currently.

The calculation of gratuity is given below : –

15 days salary to be given as gratuity for every completed years of service. 15 days will be calculated as detailed below

Gratuity = Monthly Salary/ 26 days x 15 days x No. of yrs. of service.

> 6 months is considered as one completed year of service; < 6 months is ignored.

Last drawn salary will comprise your Basic + DA+ commission (if it is fixed as % of sales turnover)

Max. Gratuity payable under the Act is Rs. 10, 00, 000/-

Click Here To Download Gratuity Calculation

Be the first to comment - What do you think?
Posted by Hrformats - September 3, 2011 at 10:37 AM

Categories: Acts   Tags: