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?
Planning resignation or early retirement? Use this 2025 guide to calculate your gratuity for Rs 40,000, Rs 60,000 or Rs 80,000 salary after 6 years 9 months of service. Easy formula explained.
Gratuity Calculation 2025: Know how much gratuity you’re eligible to receive if your last drawn salary was Rs 40,000, Rs 60,000 or Rs 80,000 after 6 years and 9 months of service. Whether you’re resigning, taking early retirement or nearing superannuation, this guide explains the eligibility rules, payout conditions, and exact formula under the Payment of Gratuity Act, 1972. Understand how your basic salary and years of service impact your final gratuity amount.
(Disclaimer: Don't consider this as an investment advice. Do your own due diligence or consult an expert for financial planning)
What is Gratuity?
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.
When do you become eligible?
You are eligible for gratuity after completing 5 years of continuous service. In cases of death or disability, this requirement is waived.
When is Gratuity paid?
Gratuity is paid at the time of:
Retirement
Resignation (after 5 years)
Superannuation
Permanent disability or death
How is Gratuity service tenure counted?
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.
What factors decide your Gratuity?
Your last drawn basic salary (plus DA, if applicable) and total years of service determine the final gratuity amount.
Can employers deny Gratuity?
No. If the organisation is covered under the Gratuity Act and you meet the criteria, gratuity cannot be denied. It's your legal right.
The Gratuity formula you need
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.
Gratuity for Rs 40,000 salary after 6 years 9 months
Rounded service: 7 years
Formula: (40,000 × 7 × 15) ÷ 26
Estimated Gratuity: Rs 1,61,538
Gratuity for Rs 60,000 salary after 6 years 9 months
Rounded service: 7 years
Formula: (60,000 × 7 × 15) ÷ 26
Estimated Gratuity: Rs 2,42,307
Gratuity for Rs 80,000 salary after 6 years 9 months
Rounded service: 7 years
Formula: (80,000 × 7 × 15) ÷ 26
Estimated Gratuity: Rs 3,22,769