TaxTMI 
TaxTMI 
Gratuity calculation
16 Sep 2010 
1 Reply 
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Gratuity calculation based on wages as defined, pro rata by working days per year, subject to a statutory ceiling.
Gratuity is calculated on wages as defined under The Gratuity Act, using the employee's last drawn wages apportioned to a working day and multiplied by completed years of service (with rule for service portions exceeding six months); this yields the statutory minimum subject to an overall statutory ceiling, while employers may provide enhanced contractual benefits. (AI Summary)
Gratuity is calculated on wages as defined under The Gratuity Act, using the employee's last drawn wages apportioned to a working day and multiplied by completed years of service (with rule for service portions exceeding six months); this yields the statutory minimum subject to an overall statutory ceiling, while employers may provide enhanced contractual benefits. (AI Summary)
Dear Sir, We (Technopak Advisors Pvt. Ltd.) have a gratuity trust. Please advise us what will be gratuity calculation:- 1) Basic*26/15*numbers of year or 2) 10 month average salary Please advise me what will be right calculation with example. Thanks Narendra 9910365950