Gratuity Calculation Confusion: Is It Based on Average or Last Drawn Salary?

Thank you very much for the guidance.

Regarding the formula - 15 days' salary multiplied by the number of years of employment...
Is the salary based on the average or the last drawn?
Please clarify.

The salary should be the last basic. Please note the complete formula:

Last Basic
_____________ X 15 X No. of years
26

For example, if the service is 6 years and the last basic is 10,000/-:

Gratuity =
10000
_____________ X 15 X 6
26

= 34615/-

For your guidance, the Gratuity Act extracts are attached, which should be noted for clarity.

If an employer follows a better Gratuity Scheme compared to the Payment of Gratuity Act, there is no bar to paying gratuity that is more beneficial to the employees.