Dear Kaushik
Gratuity is paid for Good Gratitude.
Gratuity is a benefit provided to any employee completing 5 years of continuous services which cannot be amounted/ adjusted to the employee against any dues.
1. If an employee has completed 5 years continuous service in an establishment, he is eligible for Gratuity.
2. Entitlement-15 day's salary for each completed years of service or part thereof.
2. Salary = Basic Salary+D.A.
3. As per payment of Gratuity Act, 1972, the amount of gratuity should be calculated as follows:
Formula: Salary x No.of completed years of servicex15/26
This is concepts of Gratuity .