Gratuity = (last drawn gross salary/26 working days) * 15 days * no of years of service.
4 years 6 months is the minimum period of service required for gratuity eligibility
Dear Sriram Ji,
where i have the knowledge minimum period / eligibility period is 04 years and 08 months......
and the calculation is : Basic x 15 days for a year x years of service / 26
Regards
Hi,
In some companies 4.6 years are also considered as eligible period for gratuity while some companies keep the eligibility period of 4 yrs + 240 days of 5th year (which is around 8 months) while few keep the eligibility as 5 yrs. Kindly confirm it with your HR Dept regarding what policy they have kept for Gratuity.
The simple and most used formula for gratuity is as:
Basic*4.81%*no of month (here it is not less then 60 month) which is equal to 5 years.
Nobal kishor
Hi Varun
Gratuity = Last Drawn Salary × 15/26 × No. of Years of Service
Notes:
- The ratio 15/26 represents 15 days out of 26 working days in a month
- Last drawn salary = Basic Salary + Dearness Allowance
- Years of Service are rounded down to the nearest full year. For example, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation.
Regards
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