Gratuity Calculation: Find out how much you will get for 9.7 years of service with last-drawn basic salaries of Rs 72,000, Rs 84,000 & Rs 96,000

The number of years and the last-drawn basic salary of an employee are used to calculate the gratuity amount.

If a company falls under the Payment of Gratuity Act of 1972, it cannot count itself out. 

(Last Drawn Salary x Number of Years of Service) X 15/26 Here, 15 refers to 15 days’ wages per year, and 26 refers to 30 days in a month, excluding Sundays.

Yes, it is compulsory to complete five years of continuous service to apply for gratuity. 

Gratuity is payable in the following cases: On retirement On resignation after 5 years of continuous service In case of death or disability due to accident or illness Upon superannuation (reaching the designated retirement age)

Let’s calculate gratuity for an employee with a basic salary of Rs 72,000, 9 years, and 7 months of service (rounded to 10 years). Gratuity = (72,000 × 10 × 15) ÷ 26 Gratuity = Rs 4,15,384

Let’s calculate gratuity for an employee with a basic salary of Rs 84,000, 9 years, and 7 months of service (rounded to 10 years). Gratuity = (84,000 × 10 × 15) ÷ 26 Gratuity = Rs 4,84,615

Let’s calculate gratuity for an employee with a basic salary of Rs 96,000, 9 years, and 7 months of service (rounded to 10 years). Gratuity = (96,000 × 10 × 15) ÷ 26 Gratuity = Rs 5,53,846