Gratuity Calculator
Under the Payment of Gratuity Act, an employee is entitled to receive a gratuity amount from their employer if they have completed 5 continuous years of service in the same company.
Gratuity Calculation Formula
The formula for calculating gratuity is:
Gratuity Amount = (Basic Salary + DA) × 15 × (Years of Service) / 26
- 15 denotes the wages for 15 days out of a month.
- 26 represents the number of working days in a month.
- Any service over 6 months in the last year is rounded up to the next full year. For instance, 6 years 7 months is counted as 7 years.