Arjun (System Analyst) 01 August 2011

Gratuity formula

Hello,

I am working with a software company and my last drawn Basic salary is Rs.32500/- per annum. We do not have any DA.After completeing 5 years and 8 months, I resigned and still I have to serve 2 months as notice period.

I know that the Gratuity formula as

Number of years * 15 * My last drawn basic salary / 26

What should be the number of years? 5 or 6?

Please advise me.

Thanks in advance,

Kadapa

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2 Replies

Asha Pole (Legal) 01 August 2011

Incase of number of completed years of continuous service,if it is six months or less, then you are supposed to ignore it and more than six months to be counted as full year. So in your case , you may consider 6 completed years.