Gratuity calculation, Other Topics

[udit gupta]

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

Posts / Replies

[GOPALJI AGRAWAL]

It is not only basic only but the wages as defined under The Gratuity Act. The formula would be last drawn wages/26x15 days (For every completed year of service or part thereof in excess of six months) or Rs. 10 lac. This is minimum one. Employer may offer better terms.