Gratuity Calculation - Lic Of India

good morning senior's
one of mine employee had joined the organization on 1-04-2002 and resigned on 17-11-2014. what will be the calculation of his gratuity. beside we have insured the gratuity with LIC of India.secondly kindlly clarify how to consider the completion of year either on calender year or is it financial year.
kindly help.
regards
ravi

Gratuity is calculated based on the date of joining and the last date in service. Since the employee has worked for 12 years, 7 months and a few days, he will get gratuity for 13 years because a fraction of more than 6 months will be counted as one year for the gratuity calculation purpose. The amount of gratuity is equal to 15 days salary (last drawn salary) for each year of service.
In case gratuity is linked to LIC, then there should be a trust formed and once you intimate the LIC of the retirement or resignation of employee, they will send cheque to your Gratuity Trust therefrom you can issue cheque to the beneficiary.
Madhu.T.K

Dear Mr. Ravi,
The calculation of Mr. Madhu is quite OK.
Only while sending claim to LIC, Intimate last drawn salary rate to,LIC.
LIC must have rate as on your policy renewal date. If any increment is their in after renewal, this effect will not be with LIC.
Thanks,
Vidyadhar Bhat