What is Gratuity?
Note 1: The gratuity amount is totally paid by the employer without any contribution from the employee.
Note 1: Up to Rs 20 Lacs Gratuity amounts will be exempt from income tax.
Note 3: Gratuity amounts are calculated on (Basic Salary + DA).
Note 4: In the time of Gratuity calculation services completed by employee above 6 moths assumed it as 1 Years.
Note 5: 4.81% of Basic Salary will be deducted as gratuity
· Eligibility Criteria for Payment of Gratuity?
1. The individual must have resigned from the job after continuous employment with the organization for five years.
2. He/she should have retired from the job.
3. Gratuity is earned in case of the death of that person or if he/she becomes disabled due to sickness or accident.