Which Act Talks About Gratuity?
The Payment of Gratuity Act, 1972 (the Gratuity Act) is applicable to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments with ten or more employees. The full official text of the Gratuity Act can be found here.
How is the last drawn salary calculated for gratuity?
Your last drawn salary will comprise your basic + DA+ commission on sales on turnover basis. For computation of gratuity, your service period will not be rounded off to the nearest full year. While calculating completed years, any fraction of the year will be ignored.
What is the definition of a gratuity plan?
Gratuity is a defined benefit plan given by the employer to the employee for rendering services continuously for five years or more.
