Gratuity Amount = Y x S x 15/26
Consider A, who worked for XYZ Ltd for 20 years and seven months and is drawing Rs 60,000 per month as his last basic pay. The following formula will calculate gratuity in this case:
(15 X 60,000 X 21)/26 = Rs. 7.26 lakh
The following is the formula for calculating gratuities:
G = 6 x 50000 x 15/26 = 1,73,077 INR
The number of completed years is seven and 8 months, and the last amount drawn is 50,000 rupees (INR).
Here is how gratuities are calculated:
G = 8 x 50000 x 15/26 = 2,30,769 INR
It is considered that a period of more than six months is one year to calculate gratuity. Therefore, seven years and eight months are considered eight years.