Why Use 15 Days and 26 Days in Gratuity Calculations? Seeking Clarification

Gratuity Calculation Formula

Regarding the calculation of gratuity, we have used the following formula: Last salary drawn × 15 days/26 × years of service.

Question on Gratuity Calculation

Can anyone explain why we are using 15 days as the default and 26 days per month? Please suggest to me.

Gratuity is calculated as follows: Total years of service * Last drawn Basic + DA * 15/26. Here, 15 represents half a month's pay, and 26 represents the estimated working days.

For example, if I have completed 11 years of tenure with a basic salary + DA of 32,340, the calculation would be: 11 * 32,340 * 15/26 = 205,234.61. This result would then be rounded off.

Regards, Arun Prasad D
HR