Gratuity Calculation: The Gratuity Limit Rose From 3.5 Lakh to 10 Lakhs

Gratuity Calculation: The Gratuity Limit Rose From 3.5 Lakh to 10 Lakhs:
In the age of dearness and inflation it is the good news for private sector employees that the private sector will get the Gratuity of Ten Lakhs. As per gratuity act India, Gratuity limit was 3.5 lakhs. Now the limit of Gratuity has been raised from 3, 50000 lakhs to 10, 00000 lakhs. This decision of government will give advantage and relief to private sector employees. Now as per Graduity act there is no tax imposed on the income of 10 Lakhs.

On Thursday, in the lead of PM Manmohan Singh, this decision was taken at a cabinet meeting. This proposal of Labor and Employment Ministry has been given approval. Although many state governments has provided this type of advantage earlier. It is better decision regarding gratuity act to raise the Graduity limit.

CCEA has taken decision to open the 137 General Nursing and midwife school to remove the scarcity of nurses and midwives. These schools will be made in Bihar, Chhattisgarh, Madhya Pradesh, UP, Uttarakhand, Rajasthan, Orissa, Himachal Pradesh and others. The amount of 1370 crores will be spent on this planning.

For the Gratuity calculation the gratuity calculation formula is

1. basic/26 x 15 days x number of years of service

OR

2. BASIC + DA (Last Pay drawn) X 15 /26 X No. OF YEARS WORKS

Gratuity is to be paid to any employee only he provides service for a minimum time of five years at a stretch with his employer in company. The Gratuity calculation is done as per the last average remuneration drawn and time in years served by an employee.