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.

Example:

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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