1. Gratuity is payable to employees who have completed 5 years of continuous service.Gratuity is payable
from Date of joining i.e. date of probation (training, contract, retainership basis are not considered.) This
should be mentioned in HR Policy of the company and appointment letter issued to employee.Gatuity is
calculated as = Last drawn (Basic+DA) x 15/26 x No. of year of continus. completed service It can be a
component in CTC.If employee leaves before 5 years Gratuity is not payable.Gratuity upto Rs.3.50 lacs is
not taxable.LIC is having a good Group Gratuity Scheme.Payment of Gratuity is a statutory
requirement.See attachment.ThanksRegardsPari.