Hi All,
I have worked for 5 years in company, All amount mentioned below are monthly amount as on today, and i have completed 5 years, can you tell me my Gratuity Amount
Basic - 12000
HRA - 6000
Special Allowance - 8000
Medical - 1250
Conveyance - 800
PF- 1200
Amount mentioned are as on TODAY... before 5 years when i have joined my salary was less..

From India, Bangalore
Dear Sanju,
The Gratuity Amount mentioned by Mr Kprasoon is absolutely correct.The calculation is on your Basic i.e 12000*5*15/26= 34615/-
Thanks and Regards
Ravibhushan Pandav
Human Resources Officer

From India, Pune
Dear All

an update regarding gratuity are as follows:


1. Every factory (as defined in Factories Act), mine, oilfield, plantation, port and railway.

2. Every shop or establishment to which Shops & Establishment Act of a State applies in which 10 or more persons are employed at any time during the year end.

3. Any establishment employing 10 or more persons as may be notified by the Central Government.

4. Once Act applies, it continues to apply even if employment strength falls below 10.



1. Any person employed on wages/salary.

2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years,

3. In case of death or disablement, the gratuity is payable, even if he has not completed 5 years of service.



1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages in case of seasonal establishments) based on rate of wages last drawn by the employee concerned for every completed year of service or a part thereof exceeding 6 months.

2. The total amount of gratuity payable shall not exceed the prescribed limit.

3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co., the employee will be entitled to higher benefit


Calculation of Gratuity

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


2. Max. Gratuity payable under the Act is Rs. 3,50,000/- (w.e.f. 24-9-1997)

This is revised to limit of 10 lacs Max as of now


Penal Provisions

Nonpayment of gratuity payable under the Act is punishable with imprisonment up to 2 years (minimum 6 months) and/or fine up to RS 20,000/-. Other contravention/offenses attract imprisonment up to 1 year and/or fine up to RS 10,000.


Mahesh K Prasad

From India, Mumbai
Hi All,
I have worked for 5 years in company, mentioned below is monthly basic amount as of today, and i have completed 5 years, can you tell me my Gratuity Amount
Basic - 4800
Amount mentioned is as of today.

From India, Mumbai
Dear James, Formula to calculate the gratuity amount is already given in reply of few members. Why dont you try to calculate it on your own?
From India, Pune
Dear James,
Already kamaljee said follow the formula and calculate Like that Basic 4800/26x15x5=13846 your gratuity
Actually formula is= Last basic of your salary/26x Serviceperiodx15
Sukumar Sahoo

From India, Calcutta
Dear sir, Namaste, if some one competed his 5.7 year then how to calculated this . i think this is my personal openion that calculation is :-Basic*6(yera)*15/26. Thanks Ravindra m
From India, Bhopal
Dear Ravindra m, Fractions of a year if below 6 months should be treated as 0 and above six months should treated as a completed year. 5.7 should be treated as 6 years
From India, Pune
hello All,
I have some doubts reagrding Gratuity
1. my working days in the month will be 22. shall i consider 22 instead of 26.
2. gratuity is a tax free amount- Yes or No?

From India, Hyderabad
According to the Payment of Gratuity Act " Wage or Salary " means
(a) the basic or consolidated wage or salary
(b) Cost of Living Allowance, Special Living Allowance or other Similar Allowance and
(c) piece Rates
As such. Special Allowance needs to be considered for Gratuity Calaculation Purpose.

From India, Pune

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