Am I Calculating My Gratuity Correctly Before Resigning After 5 Years?

I will be completing 5 years of service on April 20th and will be eligible for Gratuity. So, I request you to help me in understanding the calculation method as I am planning to resign in May after completing my 5 years of service. My Salary - Basic & DA = $20,000.00 per month, and the number of working days in my organization is 22 days.

Gratuity Calculation

So, as per the Gratuity Formula, my understanding is that I will be getting the below amount, i.e., Gratuity = $20,000 x 12 x 15 x 5 / 22 = $818,181.82.

Please help me understand if this calculation is correct. If I am wrong, kindly show me the correct calculation. Also, please advise me on when I can expect to receive the amount of my gratuity?

Thank you.

Gratuity Calculation Assistance

Dear Mr. Rahul,

As I understand it, your calculation of Gratuity is as follows:

Basic salary * 15/100 * Number of Years.
So, $20,000 * 15/100 * 5 = $15,000.00.

As per your question, you have completed your job for 5 years. If you complete 5.6 years or more, then calculate for 6 years.

If there are any problems, you can receive the gratuity amount.

Regards,
Ashish Shukla
[Phone Number Removed For Privacy Reasons]

You will receive Rs. 57,692/- as gratuity for 5 years. The calculation is 20000/26 x 15 x 5.

Regards,
Varghese Mathew

You will receive 57,692.31 INR as gratuity for 5 years.

Formula Used:

Gratuity Calculation in India = [(Basic Pay + D.A) x 15 days x No. of years of service] / 26

I want to clarify whether the 15 days in the formula are common in all cases or not, as 26 (which are working days) days?? Please reply with a proper answer.

Gratuity Calculation Formula

The formula for the calculation of gratuity, which is applicable upon completion of 5 years of service, is as follows: Basic + DA (Special Allowance) × 15/26 × Number of Years in Service.

In the present case, this works out as 20,000 × 15/26 × 5 = 57,692.31.

Regards,
Shekhar Mengaji