gratuity calculation.
Hi,
I am a student, need some clarification about Gratuity calculation.
How in every CTC breakup gratuity is calculated @4.81%, whereas till now i have studied dat it is calculated on the basis of no. of years an employee worked......
From India, Pune
2Hi,
I am a student, need some clarification about Gratuity calculation.
How in every CTC breakup gratuity is calculated @4.81%, whereas till now i have studied dat it is calculated on the basis of no. of years an employee worked......
From India, Pune
Employee works for 26 days on an average per month. Thus 26*12 = 312 days.
As per the Act, 15 days salary to be paid for one completed year.
Hence % comes to - 15*100/312 = 4.80769230769231 which is rounded off to 4.81%.
Hope it is clear.
From India, Pune
As per the Act, 15 days salary to be paid for one completed year.
Hence % comes to - 15*100/312 = 4.80769230769231 which is rounded off to 4.81%.
Hope it is clear.
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Gratuity calculation.doc
Gratuity Calculation tool.xls