Gratuity Calculation Help: How Do I Figure Out What I'm Owed After 6 Years?

Hello,

Can anyone tell me the formula for Gratuity Calculation? I have been working with this company for 6 years and have never withdrawn any gratuity amount.

Thank you in advance for your response.

Thank you.
Chetan

Dear Mr. Chetan Ji,

It's a very simple formula:

Basic + D.A x 15 / 26 x Number of years in service (Minimum service requirement is five years)

Regards,
PBS Kumar

Hi,

To claim gratuity, you need to complete 5 years of service. The gratuity formula is as follows:
basic * number of years worked * 15/26

For example, if your basic salary is 4000/- and you have worked for 6 years, then the calculation would be:
4000 * 6 * 15 / 26

Thank you,
Uttama

Hi,

Mr. PBS Kumar has provided the correct formula, which aligns with the Payment of Gratuity Act. Gratuity should be calculated based on Basic and DA, with the maximum amount payable being 3.50 lakhs. The minimum qualifying service period is five years.

Cyril