How to calculate gratuity for private sector employees?

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what are rules related to this and how to calculate?

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Posted by Sagar
Asked on 2017-09-18 12:50 am
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Formula for calculating gratuity:
Last drawn salary (basic salary plus dearness allowance) multiplied by number of completed years of service multiplied by 15/26
For example: your basic salary plus dearness allowance is Rs. 25000 and you have been working with your company for 5 years 3 months then your gratuity will be calculated as
25000 X 5 X 15/26
In case if you were working for 5 years 7 months, then it would have been calculated as:
25000 x 6 x 15/26
Period over six months is equivalent to 1 year.
Please note that gratuity is given only when an employee has completed 5 years or more in an organization.

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Posted by Gunjan (Questions: 2, Answers: 126)
Answered on 2017-11-19 5:28 pm
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