Gratuity:
1. Eligibility: only on competition of 5 years of service.
(provided the incumbent shall have 240 days attendance in a calendar year.)
2. Formula: Basic +DA/26 (wages last drawn) X 15 X number of years of service.
(@ 4.86% on Basic + DA per month - for C T C calculation)
3. Maximum Gratuity payable: Rs. 10.00 lakhs.
4. Computation of gratuity amount:
After arriving completed years of service, if a fraction of year comes;
a. Excess of six months: Will be taken as one more year i.e., completed years
of service + one year
b. Less than six months, over and above months (01 - 06 months) shall be
ignored and shall limited to completed years of service only.
c. In the case of a piece-rated employee, daily wages shall be computed on
the average of the total wages received by him for a period of three months
immediately preceding the termination of his employment.
5. In case of death of any employee, the minimum 5 years of continuous service is
not necessary and is eligible for gratuity for the period he worked in the
organization.