![]() Gratuity = Last drawn salary x (15/30) x Number of years of service If that is the case, the number of working days in a month changes to 30 days instead of 26 days. You can be paid a gratuity even if the organisation is not covered under the Act. Months more than five are rounded off to the following year.Ĭategory 2: Employees not covered under the Act ![]() The four months is below 5, so it is rounded off to 10. 80,000 as your last basic salary with 10 years four months of employment tenor, then the gratuity amount you will receive as per the formula is: Dearness Allowance – for government employeesĮxample: If you had been drawing Rs.The last drawn salary should be calculated to account for the following components: **Gratuity calculation is accounted at the rate of 15 days wages. *The number of working days per month is taken as 26 days. Gratuity = Last drawn salary x (15/26*) x Number of years of service Using the two critical parameters – number of years of service and last salary drawn, you can calculate the gratuity as follows: In addition, all organisations with at least ten employees working on a single day for the preceding 12 months must pay gratuity.Ĭategory 1: Employees covered under the Act For government employees, more heads specific to their pay structure is accounted, such as Dearness Allowance. These two categories cover both private as well as government employees. Category 2: Employees not covered under the Act.Category 1: Employees covered under the Act.There are mainly two categories, as given below The gratuity rules and calculations are prescribed by the Payment of Gratuity Act, 1972. We will look at multiple regulations that will help you estimate your gratuity amount to plan your investments better upon receiving the money. There are various rules for gratuity calculation that you should keep in mind beforehand. You can use the Gratuity Calculator to estimate the amount of money you will receive if you plan to leave a job after a minimum of five years of service or to look forward to your retirement.
0 Comments
Leave a Reply. |