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.
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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.