I have a doubt for gratuity calculation for employees not covered under gratuity Act.
a. Do we have a standard formula for calculation of gratuity benefit for not covered employee.
b. The formula used in common, in my opinion is for determining the taxability portion of gratuity received and is mentioned in IT Act not in gratuity Act. which is 1/2 month's salary for every completed year of service based on last ten month's average salary.
Seek clarification from readers
Rajesh Dalmia
a. Do we have a standard formula for calculation of gratuity benefit for not covered employee.
b. The formula used in common, in my opinion is for determining the taxability portion of gratuity received and is mentioned in IT Act not in gratuity Act. which is 1/2 month's salary for every completed year of service based on last ten month's average salary.
Seek clarification from readers
Rajesh Dalmia