Hello friends,to calculate the gratuity: it has the formulafirst we can calculate for one year.Ex. One year Gratuity= Basic+D.A. X 15 26 This is the formula to calculate the gratuity.

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Gratuity is computed as below:under Payment Act:Under Sec 10(10) of IT ActActual Gratuity ReceivedLess Exemption under sec 10(10)1. 15/26*completed year of service*10 months average salary2. Actual Gratuity received3.Max 350000Among these which is least is eligible for exemptionGratuity computation if employee is resigned,terminated or retiredActual Gratuity ReceivedLess Exemption under sec 10(10)1. 1/2*10 months average salary*completed year of service2. Actual Gratuity received3.Max 350000Among these which is least is eligible for exemption

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hello friends,to calculate the gratuity: it has the formulafirst we can calculate for one year.Ex. One year Gratuity= Basic+D.A. X 15 26 This is the formula to calculate the gratuitySachin P. Jawalekar

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Gratuity Calculation :Gratuity=Last Basic Pay*15 Days* Number of Year Service ------------------------------------------------------------- 26 Days

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Basic+DA26 - Working Days15 - Half of the monthNo.of YearsBasic+DA/26*15*No.of Years

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**Vaibhav Jain**
Answered On : Aug 8th, 2011

Is incentive added on basic salary?

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**Shruti Jain**
Answered On : Oct 17th, 2011

Cover under Gratuity act 1972

Least amount will be exempt

=15/26*last basic pay* no of years service

*no of years service= year + more than 6 month will count as 1 year

= 10 months average salary

*salary= basic+ DA

= 100000 Lacs

= actual amount received

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**sai krishna**
Answered On : Dec 14th, 2011

Gratuity= Last Basic Pay*15 Days

-------------------------------------------------------------

Number of Year Service* 26 Days

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**tejbhan pandey**
Answered On : Mar 21st, 2012

Last basic+D.A*15*no of year of service /26

more than 6 month of service is calculated as next year

less than six month of service is calculated as previous year

like: 5 year 8 month will be treated as 6 year

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**Pranali Raut**
Answered On : Apr 12th, 2012

Last drawn Salary * 15 days / 26 days * no of years

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**bharat ahir**
Answered On : Jul 12th, 2012

If the employee completed 4 years 4 month any 17 day and he is leaving the company is he eligible for gratuity?

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**venkkatish.ps**
Answered On : Aug 7th, 2012

If company is registered under gratuity act 1972 then formula is " last drawn basic salary*15/30 * no of years served....if its not registered then formula is " last drawn basic salary*15/26*no of years served."..........Note: Ee should serve for minimum 5 years and years in which minimum 240 working days are there, such years are only considered.........for eg: he served for 5 years but only in 3 years he or she has worked for min 240 days, then instead of 5 years, we consider as 3 years in formula.......upto 10 lakhs there is no tax for gratuity.........

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**nitin**
Answered On : Oct 10th, 2012

No he is not eligible the eligibility criteria for gratuity is 5 years

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**Monalisa**
Answered On : Aug 7th, 2013

Gratuity is paid to all such employees after their resignation or retirement.Incase of resignation gratuity is paid to such employees who have completed 5 years of service.

Calculation of gratuity-Basic+DA*15/26*Total no. yrs service

15- Half month

26- Excluding 4 sundays

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**KRISHNA**
Answered On : Jun 4th, 2014

GRATUITY=((BASIC+DA)/26)*15*YEARS OF WORKING

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