Gratuity Pay in Salary: Meaning, Formula, Eligibility, and Calculation

Meaning:

– Service tenure – Statutory benefit – Monetary appreciation

Formula:

– Salary – Service period – Employment termination

Eligibility:

– Gratuity act – Continuous service – Permanent employment

Calculation:

– Basic salary – Statutory limit – Service period

Tax implications:

– Taxable portion – Exempted amount – Retirement benefit

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