Can anyone explain the logic behind 8.33% and 4.81% in contribution towards gratuity fund ?
From India, Mumbai
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4From India, Mumbai
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The formula for the calculation of gratuity under the Payment of Gratuity Act is:
Salary x 15/26 x number of years of service.
If you apply the formula to a salary of Rs.1000 and calculate the gratuity, the per month percentage would work out to 4.807%, which is rounded off to two digits, i.e., 4.81% per month.
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From India, Mumbai
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Salary x 15/26 x number of years of service.
If you apply the formula to a salary of Rs.1000 and calculate the gratuity, the per month percentage would work out to 4.807%, which is rounded off to two digits, i.e., 4.81% per month.
Regards
From India, Mumbai
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