Can anyone explain the logic behind 8.33% and 4.81% in contribution towards gratuity fund ?

kralpy
Can anyone explain the logic behind 8.33% and 4.81% in contribution towards gratuity fund ?
Premkumar Nair
The formula for calculation of gratuity under the Payment of Gratuity Act is -
Salary x 15/26 x number of year of service.
If you apply the formula on a salary of Rs.1000 and calculate the gratuity, the per month percentage would work out to 4.807%, which is rounded off to two digits i.e. 4.81% per month.
Regards
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