Gratuity Calculation: Can Someone Explain the Steps Involved?

Procedure for the Calculation of Gratuity

Can you please let me know the procedure for the calculation of Gratuity?

Regards

Once the employee completes a period of 5 years of continuous service, he/she is eligible for gratuity. The calculation for gratuity is 15 days' wages of the employee per year multiplied by the number of years he/she has worked.

Thank you for the reply. May I know what forms need to be issued or received before calculating gratuity? Also, what needs to be done after issuing gratuity?

Thank you.

Once the employee attains one year of experience, you should enroll them for Gratuity by filling out the nomination form. Gratuity will be paid at the full and final settlement. Under that, you shall receive the declaration for the payment of the Gratuity amount. There is no need to pay for existing employees.

Regards,

[QUOTE=sneha shetty;2043342]Hi Aisha and Jeeva, thank you for the reply. May I know what all forms need to be issued or received before calculating gratuity? Also, what needs to be done after issuing gratuity?

Dear Sneha,

Instead of asking for 'piecemeal' instant coffee tips, why don't you get a bare act of the Gratuity Act and understand the overall information and implications? This will save time and energy. Moreover, use the search options as this subject has been discussed many times in Cite HR.

ATB, kumar.s.

Once the employee completes a period of 5 years of continuous service, they are eligible for gratuity. The calculation for gratuity is: Last Basic + DA (if any) * 15/26 * Number of years of service.