Hi,
I have a query. If an employer does not include Gratuity as part of CTC and the employee has completed at least 5 years of service, and the employer has not made any contributions every year, how do you calculate Gratuity? Will it be limited to the formula: Last drawn basic x number of years of service x 15/26? Should gratuity be a mandatory debit for the employer every year for all employees? I would appreciate some clarity on this concept.
Thanks!
Sharon
From India, Mumbai
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I have a query. If an employer does not include Gratuity as part of CTC and the employee has completed at least 5 years of service, and the employer has not made any contributions every year, how do you calculate Gratuity? Will it be limited to the formula: Last drawn basic x number of years of service x 15/26? Should gratuity be a mandatory debit for the employer every year for all employees? I would appreciate some clarity on this concept.
Thanks!
Sharon
From India, Mumbai
Acknowledge(0)Amend(0)
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Gratuity calculation.doc
Gratuity Calculation tool.xls