Understanding Gratuity and Leave Salary: How Do You Calculate Them for a 38500 Gross Salary?

What is the calculation of Gratuity and Leave salary (15) if the Gross Salary of the Employee is 38500?

Dear Parul,

Gratuity is calculated after completion of 5 years of service. It is calculated based on the basic salary. For example, if an employee's basic salary is Rs 25,000 per month and their service period is 5 years, the calculation will be as follows:

Basic salary: Rs 25,000
Daily wage: Rs 25,000 / 26
Gratuity amount: Rs 25,000 / 26 * 15 * 5 = Rs 72,115

Regards,
Pankaj

Dear sir,

How do I show gratuity in the salary breakup? I have enclosed an attachment with this. I don't know what the formula is, please help.

Dear Parul,

In the sheet, the gratuity amount is correctly shown (it will always be 4.81% of the current basic). However, while calculating the leave, I have inserted the formula for 15 days of annual leave for 26 days of monthly working.

Please find attached the corrected sheet. I hope this will serve your purpose.

Fellow members, can shed more light on it.