Ma service process 90 days compute full#
However, if the number of months completed in the last year of service is more than 6 months, the year is considered to be a full year for the purpose of calculation. In case the number of months worked in the last year is less than 6 months, the previous number of completed years is considered. The period of service of an employee is taken as a whole year for the calculation. Gratuity Amount = (15 * Last drawn salary amount * period of service) / 30įor example, if you have at a company for 10 years and 8 months and your salary is Rs.50,000, the calculation of the gratuity amount is done as follows: The following formula is considered for the calculation of gratuity amount for employees who are not covered under the Gratuity Act: The salary includes commission (sales-based), dearness allowance, and basic salary. However, the calculation of gratuity is based on an individual’s half month’s salary for every year that has been completed. Calculation of Gratuity for the Employees Who Are Not Covered under the Gratuity ActĮven if the organisation is not part of the Act, they can pay gratuity.