Gratuity Calculation: What will be your gratuity for Rs 65,000, Rs 75,000 and Rs 85,000 last-drawn basic salary after 9 years and 6 months of service?

Gratuity is a monetary benefit given by an employer to employees who complete at least 5 years of continuous service in a company with 10 or more employees. It's a token of appreciation for long-term service.

Any tenure of 6 months or more is treated as a full year. So, a service duration of 9 years and 6 months is considered 10 years for gratuity calculation.

You’re eligible to receive gratuity under these conditions:

Retirement Resignation after 5 years of service Death or disability during service Superannuation (official retirement age)

Two main components determine gratuity:

Last drawn basic salary Total years of service (rounded)

To calculate your gratuity under the Payment of Gratuity Act, use:

(Basic Salary × Years of Service × 15) ÷ 26 Here, 15 = days of pay per year, 26 = average working days in a month (excluding Sundays)

Gratuity = (65,000 × 10 × 15) ÷ 26 = Rs 3,75,000

Gratuity = (75,000 × 10 × 15) ÷ 26 = Rs 4,32,692

Gratuity = (85,000 × 10 × 15) ÷ 26 = Rs 4,90,384