Any employee who complete a tenure of 5 yrs or >5yrs is eligible for the same.
and Upto Rs. 3.50 Lacs is non taxable gratuity amount.
the formula of calculation for the same is :
Total year no. of services*Average salary*15/26
7th November 2009 From India, Mumbai
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
gratuity starts from day one, whethere temporary, porobationary.
- The LIC has got scheme, if your compnay has taken that scheme, then pl send the details of the employee when one joins for duty
8th November 2009 From India, Bangalore
Most of them have answered your query.
To add on Gratuity is applicable from day one of an emp's joining
(even before his /her confirmation),
But gratuity as you know is given for continous service (5 o >5) in an organisation that remains the same.
Hope its satisfacatory
8th November 2009 From India, Pune
9th November 2009 From India, Tiruchchirappalli