Gratuity Calculation - Final settlement

>> Section: 7
Determination of the amount of gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined.

Demand certified copy of notice of calculation in writing and supplied to controlling authority as well.

Avoid verbal transactions.

>>  (Monthly Basic + DA)/26X15 X (No. of years of service completed)

Monthly Basic + DA as per last drawn salary.

Service> 6month to be counted as 1Y.

Refer to:

Section: 2: Definitions: (s) "wages" means

Section: 2A: Continuous service (2) (b) (i) (ii)

Section: 4: Payment of gratuity: (2)

Can the gratuity be calculated as Basic + DA X15/30 X No:of years

@ Paul

NO.

It is 26.

The Gratuity is @ 15 days wages for each year of service.

Daily wages are calculated as Monthly wages/26..........as employee gets paid for holidays/weekly offs but does not work on such days..... 

Please let know why do we use 15 & not 30 days in calculation of Gratuity payout

@ Sandeep Yadav,

It has already been posted in the last post that "The Gratuity is @ 15 days wages for each year of service."

It is as per the Act.

The private Bill for Gratuity @ 30 days wages for each year of service, has not been passed and notifed.

Until a bill is passed and notifed Gratuity is @ 15 days wages for each year of service.