Gratuity and PF Calculations: Can Someone Explain How to Figure These Out?

Hi Varsha,

Could you please tell me how to calculate gratuity and how to calculate PF?

Thank you.

Hi Varsha,

Gratuity is calculated as 4.8% of the basic salary. It is paid after an uninterrupted service of 5 years on retirement or resignation.

Dear Varsha,

Nowadays, the discussion on gratuity is ongoing. I would like to advise you to become a member of citelegal.com and enter the employee and labor-related section, specifically the gratuity subsection. There are numerous postings on gratuity itself, and I hope you will find clear-cut clarification.

M. Srinivas
Asst Manager - HR
Ramky Group of Companies
Hyderabad
9866005600
srisu2412@rediffmail.com

Dear Varsha,

Gratuity Calculation: Last drawn wages (Basic+DA) multiplied by Number of years in service multiplied by 15 Days' wages or salary divided by 26 days. Alternatively, (Basic+DA) divided by 26 days multiplied by Number of years in service multiplied by 15 days' wages/salary.

P F: Basic + DA multiplied by 12%
- Employees' share: 12%
- Employer's share: 12% - Out of this, 8.33% goes to Pension - Remaining 3.67% goes to PF
- Total PF Contribution for employees = 15.67%

:-P MANOKAVIN