How can admin calculate gratuity?

Created by Product Content Team, Modified on Fri, 15 Mar 2024 at 01:22 PM by Product Content Team

An employer provides gratuity as a financial benefit to an employee as a form of gratitude or appreciation for the employee's service to the organization.

The admin can calculate gratuity for the following scenarios:

For employers not covered under Gratuity Act: Gratuity = Tenure of service completed in the company * Last drawn basic salary + dearness allowance * 15 / 26.
For employers covered under Gratuity Act: Gratuity = 15 * Last drawn salary * the working tenure / 30.

Note: As per the Gratuity Act, the amount of gratuity cannot be more than Rs 20 lakh.

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