Gratuity is paid to the employee for every completed year of service or part thereof in excess of si...........

Industrial Relation and labour law Labour Laws -II

Gratuity is paid to the employee for every completed year of service or part thereof in excess of six months at the rate of 15 days wages based on last drawn wages by the employee. While calculating the 15 dais wages, the number of working days in a month are taken as ?

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Explanation:

A gratuity is given by the employer to his/her employee for the services rendered by him/her during the period of employment. It is usually paid at the time of retirement, resignation, death or disablement.
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned.

In the case of a monthly rated employee, the fifteen days wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.