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Gratuity is an exgratia payment payable to an employee by the Company covered under Gratuity Act. On retirement, his total tenure of service i.e. no. of years is taken into consideration.For every 20 days of presentation, one day is taken. For one full month, 26 days are considered . The gratuity formula is as hereunder :-
No. of working days x no. of years x last drawn salary
Divided by 26 Days
There is also Group Gratuity Scheme offered by Life Insurance Cos. wherein employees of a company are covered under this scheme. Where apart from payment of gratuity,life coverage is an added benefit. And the Companies are lesser burdened by offering the burdens of gratuity payment on insurance cos. by paying yearly premiums.
What else can I help you with?
When gratuty is applicable?
You might give a gratuity when dining out at a restaurant, particularly if you get good service. Say that you and your Battered Food Club were out for a meal, and you liked it, you might tip from 15 to 20 percent. Have fun!
What will be gratuty?
If you mean gratuity this is sometimes called a tip. It is what people give to waiters and waitresses, taxi drivers, porters and others that do services for them. If you are asking how much should you give this will vary from country to country and how generous you are. I believe in the USA and Canada 15% is common. In the UK 10% of the bill is more regular. Some bills have the gratuity already listed (sometimes as service charge) and you have the choice on whether you pay it or not - depending on whether you thought there was good service or not. You don't have to leave a separate tip if there has already been a service charge on your bill.
