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The formula is: (15 * Your last drawn salary * the working tenure) / 30. For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act. Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.

On gratuity form I we have to write full name of employee and his complete address, department in which he has worked, employee number, date of appointment, date and reason for termination of service, total period of service, last drawn salary.

The Payment of Gratuity Act, 1972 is an act that makes the payment of gratuity mandatory for employers to their employees. Employees working in mines, oilfields, railways, factories, ports, and shops or establishments are covered under this Act and stand to benefit from its provisions.

Gratuity Amount is equal to one-fourth of the last-drawn basic salary of an employee for each completed six-month period. The retirement gratuity amount which is payable is 16 times the basic salary. However, it is subject to a cap of Rs.20 lakh.

Form L, Employer has to issue notice to the applicant employee, nominee or legal heir specifying the amount of gratuity and the date of payment of gratuity in Form L. Note: The payment of gratuity is to be made within 30 days from the receipt of the application or the date from gratuity becomes payable.

Gratuity refers to the amount that an employer pays his employee, in return for services offered by him to the company. However, only those employees who have been employed by the company for five years or more are given the gratuity amount. It is governed by the Payment of Gratuity Act, 1972.

Gratuity: An employee is eligible for gratuity payment after completing 5 years of continuous service with one employer. Salaried employees, excluding temporary or contractual workers, are entitled to gratuity payment after completion of a certain period of employment at one organisation.