Question 1

How is gratuity estimated?

Accepted Answer

Last monthly wages (basic + DA) × 15 × completed years, divided by 26 (Act-style) or 30 (company / not-under-the-Act). Six months or more counts as a full year. It is not an HR settlement.

Question 2

Why is the payable zero under five years?

Accepted Answer

Five years of continuous service is the usual gate. Death or disablement turns that gate off. The employer’s letter still wins.

Question 3

Is tax shown?

Accepted Answer

No. Tax is not on the AsliCost roadmap. Confirm any exemption with a tax adviser or the settlement letter.

Question 4

Is this what HR will pay?

Accepted Answer

No. Coverage, wages, and any ceiling can differ by contract. Confirm with the employer before you plan around the figure.