Dear All, In another way gratuity will be calculated at 4.81% on Gross or Basic+DA which is applicable but i wanted to know how this 4.81% occurred.
From India, Bengaluru
1From India, Bengaluru
Dear Friend,
To arrive at the calculation of 4.81% of basic salary, assume that one's current monthly basic salary is INR 50,000. Therefore his annual gratuity will be:
50,000*(15/26)= INR 28,846 per annum
Per month gratuity amount will be - (28,846/12) = INR 2404 per month
If you divide monthly gratuity by the current monthly basic, you will get the required 4.81% as gratuity contribution per month.
=(2404/50,000) = .0481 0r 4.81%
Hence for consideration of gratuity in the CTC, it is considered to be 4.81% of current basic pay.
Hope it clarifies your doubt.
Regards
Rahul Chhabra
From India, Delhi
To arrive at the calculation of 4.81% of basic salary, assume that one's current monthly basic salary is INR 50,000. Therefore his annual gratuity will be:
50,000*(15/26)= INR 28,846 per annum
Per month gratuity amount will be - (28,846/12) = INR 2404 per month
If you divide monthly gratuity by the current monthly basic, you will get the required 4.81% as gratuity contribution per month.
=(2404/50,000) = .0481 0r 4.81%
Hence for consideration of gratuity in the CTC, it is considered to be 4.81% of current basic pay.
Hope it clarifies your doubt.
Regards
Rahul Chhabra
From India, Delhi
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc