Gratuity Calculation Confusion: Can Someone Explain How It's Really Done?

narayankg
I would like to know how the gratuity payout is calculated. I have heard that it's 15 days of pay based on your current pay structure. Not too sure....
tsivasankaran
Gratuity formula is as follows:

Basic + DA at the time of leaving * 15 * number of years of completed service / 26

Siva
tsivasankaran
DA stands for Dearness Allowance. It may not be there in BPOs or it may not be paid at senior levels. It is paid to neutralize inflation.

Daily Allowance does not attract gratuity, PF, or Bonus.

Siva
nand kumar
Gratuity = BASIC + DA/26*15*Number of Years of Service

Eligibility Criteria is a minimum completion of 5 years of service.
Nisha Srivastava
Hi,

In what circumstances is a person not eligible for Gratuity payment after serving 5 years in a company? Please reply.
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