5 DECEMBER 09www.afterschoool.tk2
What is gratuity ? ?
When an employee retires, he is give somegratuitous payment, it is called gratuity.Payment of gratuity is compulsory for someorganisations,when the employee completes atleast 5 years of service. Gratuity is calculatedusing a formula : 15/26 * number of yearsworked (here number of years will be roundedoff so 12 years 8 months become 13 years,12Y. 2 months become 12).