Dear young friend Sonali,
Pl see the payment of Gratuity Act,section4(2) Explanation, it is clearly mentioned:Dividing the monthly rate of wages last drawn by the Employee by 26 and multiplying the quotient by 15.
Example: Basic+DA= 3000/26 Multiply 15=you get1730.76923multiply5 years service=Rs8654/=is the gratuity payable for a person who was drawing Rs3000/= as Basic+DA with 5YEARS OF CONTINUOUS SERVICE.This is an Explanation by an amendment in the Act provided by the GOVT after the supreme court judgement in LalappLingappa case in 1980
Pl see the payment of Gratuity Act,section4(2) Explanation, it is clearly mentioned:Dividing the monthly rate of wages last drawn by the Employee by 26 and multiplying the quotient by 15.
Example: Basic+DA= 3000/26 Multiply 15=you get1730.76923multiply5 years service=Rs8654/=is the gratuity payable for a person who was drawing Rs3000/= as Basic+DA with 5YEARS OF CONTINUOUS SERVICE.This is an Explanation by an amendment in the Act provided by the GOVT after the supreme court judgement in LalappLingappa case in 1980