Gratuity Calculation: What is gratuity and when do you receive it? Here's how much you can get for Rs 65,000, Rs 75,000, and Rs 85,000 last-drawn salary after 10.7 years of service?

- An employee must complete at least five years of continuous service in a company, as per the Payment of Gratuity Act, 1972. - You leave a service due to retirement, resignation, termination (not for misconduct), death, or disability.

Gratuity is payable in the following situations: 1. Retirement: Upon retirement from service 2. Resignation: After completing 5 years of continuous service 3. Death or Disability: In the event of death or disability due to accident or illness while in service 4. Superannuation: Upon reaching superannuation age (a type of retirement benefit)

(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.

If your service period is more than six months, it is rounded up to the next full year.

For instance, eight years and eight months is considered 9 years for calculation purposes.

Let’s calculate gratuity for an employee with a basic salary of Rs 65,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (65,000 × 11 × 15) ÷ 26 Gratuity = Rs 4,12,500

Let’s calculate gratuity for an employee with a basic salary of Rs 75,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (75,000 × 11 × 15) ÷ 26 Gratuity = Rs 4,75,962

Let’s calculate gratuity for an employee with a basic salary of Rs 85,000, 10 years, and 7 months of service (Rounded to 11 years). Gratuity = (85,000 × 11 × 15) ÷ 26 Gratuity = Rs 5,39,423