Monday, February 14, 2011

Gratuity Calculation

The gratuity computation is as follows:

Basic salary as on 31st Mar+DA * (15/26) * No. of yrs of service.


An employee joins on 1st March 2002 and resigns on 26th December 2008. His basic salary as on 31st Mar 2008 is 15000.00, then how do you calculate gratuity

Ans:1st March 2002 to 26th December 2008 = 6.8 years of service15000 * (15/26) * 6.8 years = 58846.00If there is a increase in basic salary during the year, the same can be considered proportionately.

This is how to calculate Gratuity....

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