PepsiCo Deputy Manager HR Interview Questions and Answers

Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for the employee's service upon retirement or resignation.

• Gratuity is a statutory benefit provided under the Payment of Gratuity Act, 1972 in India.

• It is calculated based on the employee's last drawn salary and years of service.

• Employers are required to pay gratuity to employees who have completed at least 5 years of continuous ...read more

Gratuity is calculated based on the number of years of service and last drawn salary of an employee.

• Calculate gratuity = (Last drawn salary * 15/26) * Number of years of service

• Last drawn salary includes basic salary and dearness allowance

• Number of years of service is rounded off to the nearest whole number

• Gratuity is payable if an employee completes 5 years of continuous service