Generally all good companies divide Basic salary by 26 to get the daily salary. The law is to pay 21 days salary for every year worked and this also applies on pro rated basis after one year of completion.
This gratuity is only on basic salary and allowances are not considered.
If you have a contract which pays you overtime as well then the best way to calculate your daily salary is as below. This will remove the confusion on weather your employer is calculating the daily salary based on 26 days or 30 days.
OT Rate / 1.5 = Regular time Rate.
Regular Time Rate x 8 = Daily Rate.
Daily Rate x 21 days = One year Gratuity.
One Year Gratuity x Years Worked = Total Gratuity.
Hello,
Generally all good companies divide Basic salary by 26 to get the daily salary. The law is to pay 21 days salary for every year worked and this also applies on pro rated basis after one year of completion.
This gratuity is only on basic salary and allowances are not considered.
If you have a contract which pays you overtime as well then the best way to calculate your daily salary is as below. This will remove the confusion on weather your employer is calculating the daily salary based on 26 days or 30 days.
OT Rate / 1.5 = Regular time Rate.
Regular Time Rate x 8 = Daily Rate.
Daily Rate x 21 days = One year Gratuity.
One Year Gratuity x Years Worked = Total Gratuity.