Gratuity Calculation Confusion: How Should It Be Done for a 22-Day Work Month?

I work in an ITES company that has 22 working days, with a 5-day-a-week working schedule. In that case, what should be the formula applied for calculating the gratuity? Please reply ASAP so that I can send this to the HR department. Currently, they are calculating it using Basic*15/26*No. of years with the company.

Regards,

Gratuity Calculation Formula

Here is the accurate formula for gratuity calculation:

Current Basic Salary / 26 * 15 * number of years in service.

An employee becomes eligible to receive gratuity after completing 5 years of service with the employer.

Regards,
Varun Sharma

I fully agree with Mr. T. Sivasankaran and Mr. Varun Sharma. If any company works a 5-day week and a 6-day week, the gratuity calculation is based on the current basic salary divided by 26, multiplied by 15, and then multiplied by the number of years of service, subject to a minimum of 5 years of continuous service.

Regards,
Krishna Prasad H N
Head of HR

Gratuity Calculation Formula

Formula: Gross (Basic + DA) / 26 * 15 * No. of years of service. Gross includes the last Basic and DA.

4 years and 240 days completed cases are also eligible for gratuity as per law.

Regards, Hiten Dalal Officer HR and Personnel.

In our company, a worker passed away after completing 1 year of service. My question is whether he is eligible for gratuity, and please provide the formula to calculate his gratuity.

If a worker dies after completing one year of service, you have to give the gratuity using the same formula, considering their service up to 58 years.

Regards,
Alphonse

Yes, he is eligible for gratuity. The condition of 5 years is not applicable in the following cases:
1) Death of the employee.
2) Permanent disablement due to an accident or any disease.

Thanks & Regards,
Hiten Dalal

Please note that eligibility for 5 years in the case of 5 days working shall be 4 years + 190 days, not 240 days.

Regards,
Ulhas