Clear And Easy Gratuity Calculation?

Dear All,
I am working as a HR in pvt company i want clear calculation for gratuity
Pl help me to do..

Dear Friend,
For Gratuity Calculation, the below equation is taken:
Gratuity = (Last Drawn Basic + DA) x 15 x Nos. of Year / 26
Hope this will help you. Cheers.

Calculation:
W x Y x 15/26
where W = Last Wage drawn i.e., basic + DA
Y = number of completed years of continuous service (six months or less to be ignored and more than six months to be counted as full year.
15 = 15 days salary
26 = No. of working days in a month.
Maximum Limit: Rs.3.5 lacs.

Hi
simple formula as mentioned by others too
current Salary/26*15* no of years worked.
Salary could be anything as per the company's policy but not less than minimum wages.

hello every one
i see the all post their all formula is correct but noted that an employee complete the service 5 years then he/she will entitled for gratuity.
Sanjay Gupta

Dear,

All the above learned followers have given their formula to derive one day's wage by dividing monthly salary by 26. I would like to correct here. The last wages is to be arrived at by dividing the monthly Basic+DA+any other allowance which forms the part of salary/wages of the individual employee(like in some organizations Doctors are given Non-Practicing Allowance i.e. NPA which is considered as part of their Basic for all purposes). So first it is to be ascertained whether the employee is being paid at the rate of 26 day's wages a month or @ 30 days. Normally this variation is in case of Daily rated and Monthly rated employees.

Secondly, the limit has been raised to RS.10 Lakhs since Sept.,2009.

So, the formula stands as :

One day wage last drawn = Total (Basic+DA+any other allowance as above)/26 or 30 (as the case may be) ----- w

Period of service = n Yrs

Gratuity payable for = y days (n years x 15)

Gratuity amount = w x y limited to Rs.10 Lakhs.

Hope now the matter is easy to calculate.

AK Jain