Formula & Calculation Methodology
Gratuity = (15 * Last Drawn Basic+DA * Completed Years of Service) / 26.
Calculate employee gratuity entitlement under the Payment of Gratuity Act 1972 using the 15/26 formula. View continuous 5-year service rules and the latest ₹25 Lakhs tax-exempt limit under Section 10(10).
Gratuity = (15 * Last Drawn Basic+DA * Completed Years of Service) / 26.
Basic + DA: ₹45,000 | Completed Service: 8 Years
Yes, under the Payment of Gratuity Act 1972, completing 5 continuous years of service with the same employer is mandatory, except in cases of death or permanent disablement.