Re: Gratuity - Salary Formula

Thank u very much for the guidance.
Reg. the formula - 15 days salary X No. of years of employment....
Salary is Average OR Last drawn ?
Please.....

The salary should be Last Basic.
Pls note the complete formula = Last Basic
__________ X 15 X No. of years
26
For Example, Service 6 years, Last Basic 10,000/-
Gratuity = 10000
__________ X 15 X 6
26
= 34615/-

For your guidance Gratuity Act extracts is attached which may be noted for clarity.
If an employer follows a better Gratuity Scheme compared to the Payment of Gratuity Act there is no bar for paying gratuity which is more beneficial to the employees.