Gratuity is a statutory benefit paid to all full-time permanent employees who have worked continuously for Intuit for at least 4 years and 190 calendar days. It is an amount paid to an employee based on the duration of his/her total service with the organization and is payable on cessation of employment by taking the last drawn salary as the basis for the calculation.
As an organization, we do not have any cap on gratuity and pay out the full amount as per the below guidelines.
- The gratuity is paid at 15 days salary (basic pay) for each completed year of service. The last drawn monthly basic salary is considered for calculation.
- A month is considered as 26 days for calculation (15/26).
- A period of more than six months is considered as ONE year and less than is ignored for computation.
Formula for Calculation of Gratuity Amount
Gratuity = (Last drawn Basic Salary x 15 days x No. of yrs. of service)/26
Exemption From Tax
The gratuity received up to the limit of INR 2,000,000 is liable to be exempted from taxation under the Income Tax Act, and any amount over and above this limit is taxable. Gratuity received from a previous employer is to be pooled with gratuity received from the present employer for computing tax-exemption limit. It is the employee’s responsibility to ensure that he/she discloses any prior gratuity amount he/she received to ensure the appropriate tax exemption is provided.
Please ensure your nominee details are updated so that your beneficiary receives the benefit. Complete the Application for Gratuity Settlement Form and the Gratuity Self Declaration Form to receive gratuity at the time you leave Inuit. As these are government forms, they have to be printed back to back, filled out by hand and submitted in hard copy with physical signatures to the Payroll team.