How to calculate gratuity?

Gratuity depends on various factors like your basic pay, years of service etc.,

Hope a gratuity calculator will help you.

{(Basic+DA)/26*15*No. of Years in service}

Here Basic+DA is as per last drawn salary and since no. of months in 8^th year is less than six, no of years may be taken as 7.

Gratuity = (Last drawn salary / 26) x 15 x Number of years of service

Notes:                                                                                                                                                                             The ratio 15/26 represents 15 days out of 26 working days in a month 

Last drawn salary = Basic Salary + Dearness Allowance 

Years of Service are rounded down to the nearest full year. For example, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation. 

after 5 years, 6 months and above is considered as a year. For example if a person is having an experience of 6 years and 6 months, then it will be taken as 7 years.