What is Gratuity?
Gratuity is a monetary benefit given by an employer to an employee for services rendered to the company over a period of 5 or more years. It is a part of the salary and is generally paid at the time of retirement, resignation, or death.
How is Gratuity Calculated?
For employees covered under the Payment of Gratuity Act, the formula is: Gratuity = (15 * Last drawn salary * Tenure of working) / 26
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