Hello Thanks in advance,
I want to configure Gratuity i added a component Basic my calculation is coming but showing difference i am not able to configure 15 factor which is defined in excel formula here sharing all details of Gratuity calculation.
Please help me out for this.
Basic : 12022
Gratuity : 15*12022(Basic)*7(Total Working years)/26
Employees covered under the Act: For this category, a formula is used to calculate the gratuity payable to the employees. The formula is based on the 15 days of last drawn salary for each completed year of service or part of thereof in excess of six months.
The formula is: (15 X last drawn salary X tenure of working) divided by 26 The last salary drawn includes the basic salary, dearness allowance and commission received on sales.
Example: For instance, the last drawn basic salary of Mr. Ajay is ₹ 40,000/ month and his employment with DCB Company was for 26 years. In this case, the gratuity will be: Gratuity Amount = (15 * Salary Last Drawn * Employment Period)/ 26 Gratuity Amount of Mr. Ajay = (154000026)/26 = ₹ 6,00,000.