Dear Team, What is the gratuity formula if an employees completes his/her 7 years of service with 25000 salary per month?
From India, Coimbatore
From India, Coimbatore
15
Hi,
The amount of gratuity for employees whose employer is covered under the Gratuity Act can be calculated using the formula: Gratuity = n * b * 15 / 26.
Where:
n = Tenure of service completed in the company
b = Last drawn basic salary + dearness allowance
For example, if you have worked with XYZ company for a period of 15 years, and your last drawn basic salary along with dearness allowance was Rs 30,000, then the amount of gratuity would be:
15 * 30,000 * 15 / 26 = Rs 2,59,615
For better understanding, you may reach us at https://bit.ly/3dV6ujK.
Zain
From India, Surat
The amount of gratuity for employees whose employer is covered under the Gratuity Act can be calculated using the formula: Gratuity = n * b * 15 / 26.
Where:
n = Tenure of service completed in the company
b = Last drawn basic salary + dearness allowance
For example, if you have worked with XYZ company for a period of 15 years, and your last drawn basic salary along with dearness allowance was Rs 30,000, then the amount of gratuity would be:
15 * 30,000 * 15 / 26 = Rs 2,59,615
For better understanding, you may reach us at https://bit.ly/3dV6ujK.
Zain
From India, Surat
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