HOW TO CALCULATE GRATUITY???

What do we mean Gratuity?
Who fulfills desirable conditions?
How to Calculate it?

1. How to Calculate Gratuity??? Module-9 Dr. Satyabrata Patro Lecturer, P.G. Dept. Of I.R.&P.M. Berhampur University

2. To have an understanding of Learners about: What the Gratuity is ? How one should fulfil desirable conditions directed towards ensuring it ? How one should calculate the Amount of Gratuity ? Objective of the Study

3. Gratuity is a collectable amount for an employee, paid as a gratitude by the organization. It is also known as the end of service benefits. An individual who has worked in an organization for a minimum period of 5 years is eligible for this benefit. Gratuity is calculated based on his/her average salary, dearness allowance and number of years he/she worked in the organization. This gratuity calculator helps the common salaried people to calculate their gratuity amount. Gratuity???

4. Gratuity Calculation= [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26 Where, D.A = Dearness Allowance. End of Service Benefits Eligibility : 1. Any person employed on wages/salary. 2. At the time of retirement or resignation or on superannuation, an employee should have rendered continuous service of not less than five years. 3. Payable without completion of five years only when death and disablement. Contd... Formula ....

5. Example Calculate gratuity amount for a given Basic Pay = 17500, DA = 1500 and Years of Service = 25 Solution :  = ( ( 17500 + 1500 ) * 15 * 25 ) / 26  = ( 19000 * 375 ) / 26 = 7125000 / 26 = 274038.461 Therefore, gratuity amount is  274038.461   Contd...