dear aruna
there are some preconditions
- one should have completed minimum 5 years service in the organisation
- salary means basic salary pklus DA plus any other form of DA
- gratuity is calculasted 15 days salary for every completed year of service
- 15 days salary is (basic+Da) divided by 26 which is again divided by 2 gives 15 days salary
- completed year of service means one should have completed 5 years for the eligibility of the service
- year means 6 month service or more is considered as one year, less than 6 months is omitted
- but basic one should complete 5 years,
Ex: if one's salary is 10000 (including basic and DA) and
i) if has completed 8 years and 4 month, the gartuity is calculated as follows
(10000/26)/2= 15 days salary, since he has completed 8 yrs and 4 months, for calculatio only 8 years is taken into consieration ie 15 days salary(as calaculated above multiflied by 8 will be gratuity
ii) in case he has completed 8 years and 7 months. the 15 days salary calculated like above will be multiflied by 9 will get gratuity ammount
hope i hv clarified all the points
nagaraj
