Formulae :-
Gratuity = [(Basic + DA) X 15 X No. of years of Service]/ (No. of working days in a month)
Example :- An employees Sal :- Basic 5000 / HRA 2000 / Special Allowance 4000 ( say he has worked for 5 yrs )
So Gratuity = ( 5000 * 15 * 5 ) /26
For gratuity calculation HRA and other allowances is not considered.
May would wonder whats the number 15 & Of Course why is 26 taken as working days in a Month ??
Answer :-
1> Gratuity is paid 15 days per month
2> According to gratuity act a month means and includes 26 days( excluding 4 weekly off variations not observed)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment