Gratuity Calculator

How is Gratuity Calculated?
As per the Payment of Gratuity Act, 1972, the formula is:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26

  • Last Drawn Salary: Basic Pay + Dearness Allowance (DA).

  • 15: Wages for 15 days per year.

  • 26: Working days in a month.

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