Gratuity Calculation
Hi, I am a student in need of some clarification about gratuity calculation.
How is gratuity calculated at 4.81% in every CTC breakup, whereas until now, I have studied that it is calculated based on the number of years an employee has worked?
From India, Pune
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2Hi, I am a student in need of some clarification about gratuity calculation.
How is gratuity calculated at 4.81% in every CTC breakup, whereas until now, I have studied that it is calculated based on the number of years an employee has worked?
From India, Pune
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Employee works for 26 days on average per month, totaling 26 * 12 = 312 days per year. According to the Act, 15 days' salary is to be paid for one completed year. Therefore, the percentage comes to 15 * 100 / 312 = 4.80769230769231, which is rounded off to 4.81%. I hope this calculation is clear.
From India, Pune
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From India, Pune
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Why Do Companies Include Gratuity in CTC?
Why do companies include the gratuity amount as part of the CTC? Why is 4.81% of the monthly basic salary deducted or retrieved from the monthly salary?
What Should Employees Do?
What should an employee do if the company is deducting 4.81% of the monthly basic salary when they are not supposed to do so?
Thank you.
From India, Madras
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Why do companies include the gratuity amount as part of the CTC? Why is 4.81% of the monthly basic salary deducted or retrieved from the monthly salary?
What Should Employees Do?
What should an employee do if the company is deducting 4.81% of the monthly basic salary when they are not supposed to do so?
Thank you.
From India, Madras
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Gratuity-Leave calculation on CTC-Rev..xls
Gratuity calculation.doc