Gratuity Calculation: What will be your gratuity for Rs 40,000, Rs 50,000 & Rs 60,000 last-drawn salary after 6 years and 9 months of service?

Gratuity is a lump sum amount paid by your employer as a reward for continuous long-term service. Under the Payment of Gratuity Act, 1972, employees with over 5 years of service are legally entitled to receive it.

You are eligible for gratuity after completing 5 years of continuous service. In cases of death or disability, this requirement is waived.

Gratuity is paid at the time of:

Retirement

Resignation (after 5 years)

Superannuation

Permanent disability or death

Service tenure is rounded off. For example, 6 years and 9 months is considered 7 years, as any service exceeding 6 months counts as a full year.

Your last drawn basic salary (plus DA, if applicable) and total years of service determine the final gratuity amount.

No. If the organisation is covered under the Gratuity Act and you meet the criteria, gratuity cannot be denied. It's your legal right.

Use this standard formula: (Last Drawn Salary × Years of Service × 15) ÷ 26 Here, 15 represents 15 days of pay per year, and 26 is the number of working days in a month.

Rounded service: 7 years

Formula: (40,000 × 7 × 15) ÷ 26

Estimated Gratuity: Rs 1,61,538

Rounded service: 7 years

Formula: (60,000 × 7 × 15) ÷ 26

Estimated Gratuity: Rs 2,42,307

Rounded service: 7 years

Formula: (80,000 × 7 × 15) ÷ 26

Estimated Gratuity: Rs 3,22,769