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.
From India, Chennai
Acknowledge(0)
Amend(0)
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.
From India, Chennai
Acknowledge(0)Amend(0)
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
From India, Chennai
Acknowledge(0)Amend(0)
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
From India, Chennai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Benefits.doc
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F