Software Engineer
hi there, I Need formula for gratuity calculation pls. help me thanks, Lokesh
From United States, Fairfield

HR Practices
Hi Lokesh,
Gratuity Formula is
Last Basic Salary + DA earned / 26 * 15 * No of years worked
The conditions are
1) Minimum of 5 years of service
2) The above formula is for monthly salary employees
Gratuity amount above rupees 3.6 Lacs would be taxable.
Amit Seth.

From India, Ahmadabad

Dear sir,
Pls. clarify gratuity payable to an employee on his death before completion of his 5 yrs service.( 1.5 -2.0 yrs. in service only.)
His salary was Rs. 5000.00 p.m
pls. calculate his gratuity amount for 2 yrs.

From India, Mumbai

Hi, Since u have not clarified , whether the amount of Rs. 5000/- is basic or gross salary. The gratuity amount would be calculated , at formula which Amit has mentioned above. katyana
From India, Gurgaon
Hi lokesh,,,
Kindly click on the link to get the details
Also find an attachment

From India, Coimbatore

Attached Files
File Type: xls gratuity_computation_1__460.xls (24.5 KB, 1392 views)


Executive Assistant to MD
Hi resigned from my services. I was working on the post of personal secretary to executive Director. I joined my services on 01/05/2001 and resigned on 31/05/2017. My total length of services is of 16 years.
my basic salary is Rs. 15,570/- and DA is 375, hence, I calculated my gratuity as under:
15,570+375= 15,945 x15 x 16 /26= 1,47,184 would be my gratuity amount. But i received the cheque of Rs. 1,29,360/- only. When I asked my accounts department, they said we are giving and calculating like this only. So the question, is should I ask them for the formula which they have used in calculation. Is there different formulas to calculate gratuity rather then above which i have used.
Please anybody guide me - I need clarification.

From India, Kolkata
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