Gratuity Ceiling Increased From Rs.10 Lacs To Rs.20 Lacs For Central Govt Employees

Friends,
PFA notification dated 4.8.2016 accepting various recommendations of Seventh Pay Commission including enhancement in ceiling of gratuity for Central Govt employees from Rs.10 lacs to Rs.20 lacs.
Thanks
23rd September 2016 From India, Malappuram

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Gratuity ceiling increased to Rs.20 lacs for Central Govt employees 4.8.2016.pdf (1.24 MB, 660 views)

i am working in private textile company from 2009 on wards, now i am going to resignation my job. so, i request you to clarify i , am eligible for gratuity,or how its calculate or i am how much eligible for gratuity or other benefits. please reply me
23rd September 2016 From India, Chennai

Hi Aruna nataraj,
You are very much eligible for gratuity.
Gratuity is calculated based on your last drawn salary and no. of years you have worked with the company without any break in service.
The formula is 15 days salary for each completed year of service.
In your case, assume your salary is 26000, your per day salary is Rs.1000/- and your gratuity will be 7x15*1000.( seven is the completed years, 15 days wages multiplied with per day wag)
Hope this is clear now.
23rd September 2016 From India, Coimbatore

Dear all, I think gratuity will be calculated on employee basic + DA. example. Gross salary is 26K, Basic+DA 18K then Gratuity will be calculate only for 18K 18000/26*15*7=65172
24th September 2016 From India, Dehradun

Yes Mannu, You are right. Gratuity is based on applicable basic salary plus DA. Regards Rameshan PT
24th September 2016 From India, Coimbatore