Gratuity Settlement Calculation
Gratuity settlement amount typically depends on the circumstances under which the withdrawal is made:
Completion of Minimum Tenure
In the event of completing a certain minimum tenure in the organization, it is calculated as shown below:
\[15/26 \times \text{No. of Years of service (rounded to the nearest integer)} \times \text{Last drawn Basic Salary}\]
For example, if Mr. John has served for 67 months and his last drawn Basic Salary amounted to INR 20,000, the calculation would be:
\[15/26 \times 6 \times 20,000\]
In the Event of Decease
In the event of the decease of the employee:
\[15/26 \times \text{No. of Years Left of service (rounded to the nearest integer)} \times \text{Last drawn Basic Salary}\]
For instance, if Mr. John works for three years followed by untimely decease and his Last Drawn Basic Salary amounted to INR 20,000, the calculation would be:
At the time of death, assuming an age of 35 years, the Service Provider will compute gratuity for the remaining service period. Thus, \((58 \text{ (assuming Superannuation Age)} - 35 \text{ (Current Age)} = (23 \text{ years left of service} + 3 \text{ years of service rendered}) \times 15/26 \times 20,000)\).
Hope this helps.