firstname.lastname@example.org Started The Discussion:
Dear all How to calculate gratuity plz give an examle.
As per my knowledge, An employee should have rendered continuous service of not less than five years,
No of Years Salary (Earned Basic + D.A) Calculated Salary (B/26*15) Calculated gratuity (A*C) Maximum gratuity Applicable gratuity
(A) (B) (C) (D) (E)
6 10000 5769 34615 1000000 34615
Act says ….. 4 years 8 months (or 240 days to be precise for organizations working 6 days a week)
4 years 190 days (in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week )
In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service
Hope you are now clear about the rules.
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