Payroll - How do you calculate Gratuity?

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How do you calculate Gratuity?

Total Answers and Comments: 4

Last Update: September 16, 2009 Asked by: Smita

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Best Rated Answer

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Submitted by: sunjas_man02

hello friends,

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity= Basic+D.A. X 15
26

This is the formula to calculate the gratuity.

Above answer was rated as good by the following members:
dreamgirldream01, raju_divu

November 29, 2007 04:50:22

sunjas_man02

Member Since: November 2007 Contribution: 1

RE: How do you calculate Gratuity?

hello friends

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity Basic+D.A. X 15
26

This is the formula to calculate the gratuity.

Is this answer useful? Yes | No

2 0

Overall Rating: +2

June 01, 2008 22:19:47

chintamani

Member Since: June 2008 Contribution: 7

RE: How do you calculate Gratuity?

Gratuity is computed as below:
under Payment Act:
Under Sec 10(10) of IT Act

Actual Gratuity Received
Less Exemption under sec 10(10)
1. 15/26*completed year of service*10 months average salary
2. Actual Gratuity received
3.Max 350000
Among these which is least is eligible for exemption

Gratuity computation if employee is resigned terminated or retired
Actual Gratuity Received
Less Exemption under sec 10(10)
1. 1/2*10 months average salary*completed year of service
2. Actual Gratuity received
3.Max 350000
Among these which is least is eligible for exemption

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Overall Rating: +1

December 22, 2008 02:54:45

Sachin P. Jawalekar

Member Since: December 2008 Contribution: 1

RE: How do you calculate Gratuity?

hello friends

to calculate the gratuity: it has the formula

first we can calculate for one year.

Ex. One year Gratuity Basic+D.A. X 15
26

This is the formula to calculate the gratuity

Sachin P. Jawalekar

Is this answer useful? Yes | No

1 0

Overall Rating: +1

September 16, 2009 01:24:43

sachinlad

Member Since: September 2009 Contribution: 1

RE: How do you calculate Gratuity?

Gratuity Calculation :

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

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