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Common Gratuity Calculation Mistakes to Avoid
Avoid costly errors in your gratuity calculation. Learn the most common mistakes employees make and how to ensure you get the correct amount.
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5 min read
Common Gratuity Calculation Mistakes
Ensure you get what you deserve
Last Updated: February 10, 2024• Reading Time: 5 min read
Top 5 Mistakes
- Including allowances in basic salary: Only basic salary counts for gratuity
- Wrong contract type: Limited vs unlimited makes a big difference
- Incorrect service calculation: Count from actual start date
- Ignoring resignation penalties: Unlimited contracts have reduced gratuity for early resignation
- Not checking the 2-year cap: Maximum gratuity is capped at 2 years salary
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gratuity mistakescalculation errorsemployee tipscommon errors