SBI Employees Gratuity - Eligibilty , Calculation and Taxability

BASIC INFORMATION
An employee who has served the bank for at least 5 years will be eligible for the gratuity as per the 'Payments of Gratuity Act,1972'.


CALCULATION OF GRATUITY
The amount will be paid for 15 days a year for last drawn salary taking 26 days in a month.

For officers last drawn salary = Basic Pay + DA + FPA + PQA
For award staff last drawn salary = Basic Pay + DA + FPA + PQA + PA + AA

Formula for calculating the gratuity is -

CEILING OF GRATUITY
It is to be noted that the ceiling of gratuity is Rs. 20 Lacs w.e.f. 29.03.2018.



EXAMPLE

Now let us take an example to understand it more clear - 

Employee - Anil Kumar Gupta
Joining date - 16/01/1995
Retirement date - 31/03/2019
Last drawn salary = Rs. 95000

Hence total service = 24 years 2 months 15 days

Therefore , Gratuity = 95000 x 15 x 24 / 26 = Rs. 13,15,385


TAXABILITY AS PER INCOME TAX

As per Income Tax Act, 1961 gratuity is totally EXEMPT .



HOW TO CLAIM THE GRATUITY?

First thing to note is that the gratuity can be applies only within 3 months prior to the retirement date. For ex. between 01/01/2019 - 31/03/2019 in case of the example above.

Second for applying it you have to use your HRMS portal.

1) Log on to HRMS from here - https://hrms.onlinesbi.com/.
2) Go to Employee Self Service -> HR Initiatives -> PPFG -> Apply Gratuity Payment Request -> submit the form
3) Take out the print by clicking on the ‘Print’ button & submit (duly signed & witnessed) forms to salary disbursing authority / OAD.