Re: Gratuity Eligible On Maximum Salary

Dear all
Can anyone tell me the eligibility for the entitlement of gratuity to any employee and what is the role of age factor.
Vivek

Dear Manokavi,
Can you explain in detail the gratuity amount (10 lacs)..
Vivek

There is no maximum limit for gratuity calculation.
Entitlement: Sec-2(e) on completion of five years service except in case of death or disablement.
Qualifying Period: On rendering of 5 years service either termination, resignation or retirement.
Wages Means: Basic+ DA
Wages for Calculation: Sec-2(s) @ 15 days wages for every completed years as if the month comprises of 26 days at the last drawn salary.
(Basic+DA / 26) * 15 * No. of completed years of services.
Total Ceiling: Rs.10, 00,000

I have basic salary only no Dearness allowance reflect in Payslip DA is hide in Payslip or i dont have DA, IF i dont have DA the formula comesBasic instead of Basic+DA
Is i am correct
What about the loss of DA & what is LTA one of my superior have LTA but i dont get that what is the role of pay and what is LTA
Regards
S.Vinoth Kumar