Gratuity rule - How can I convince directors to pay gratuity amount?

Hello seniors,
We are manufacturing unit located near to Baroda, Gujarat. Previously there was no HR in this unit so there is nothing like HR system here.
I want your guidance in following case:
One employee is working in our organization from 7 years. Now suddenly he is leaving organization with one month of notice period. And now he is asking for gratuity. His basic salary is Rs. 9000 CTC, basic is Rs. 5000/- . How much will be gratuity amount??
Also Directors of my organization is don't want to pay gratuity amount. How can I convince them to pay gratuity amount?
Thanks in advance..!

Dear Mr Anamika, from your post it appears you are new to this profession.
Please clarify "His basic salary is Rs. 9000 CTC, basic is Rs. 5000/- " Even after being in the service, salary is Rs9,000/-Please note that Gratuity is Payable on Basic+DA+VDA on par with Minimum Wages applicable to your industry.Please go through Payment of Gratuity Act, Minimum Wages Act/notification before you take up the matter with your Directors.

yes I have only 6 months of experience in HR.
Thanks for your response.
It was typing mistake: His salary is Rs. 9000/- CTC. Basic is Rs. 5000/-". We are not giving DA.

Amount of Gratuity payable is Rs20,192/-
Basic-5000/26X15Daysx7Years-Rs20,192/-
Please collect Gratuity claim Application from Employee & pay within 1 Month from the date of leaving Service by cheque & send details to controlling Authority i.e ALC

Calculations are already explained. If you are 10+ employee company then act becomes applicable to you. You can show the Act applicability clause under the Act. You can share the URL with them & inform the management that the act is applicable to you. If you refuse pay even if act is applicable, eligible employee may approach Labour Office & this will mean inviting trouble, you may inform the management.