Gratuity Calculation: What will be your gratuity for Rs 33,000, Rs 56,000, and Rs 71,000 last-drawn basic salary after 8 years and 5 months of service?
Published on 21/07/2025 02:32 PM
Gratuity Calculation: The number of years and the last-drawn basic salary of an employee are used to calculate the gratuity amount. To your surprise, any service period of 6 months or more is rounded up to a full year. As per the Payment of Gratuity Act, 1972, organisations with 10 or more employees are mandated to pay gratuity. On that note, let’s find the gratuity amount for someone with the last-drawn basic salary of Rs 33,000, Rs 56,000, and Rs 71,000 after 8 years and 5 months of service.
The number of years and the last-drawn basic salary of an employee are used to calculate the gratuity amount.
(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 a company falls under the Payment of Gratuity Act of 1972, it cannot count itself out.
Yes, it is compulsory to complete five years of continuous service to apply for gratuity.
Gratuity is payable in the following cases:
Let’s calculate gratuity for an employee with a basic salary of Rs 33,000, 8 years, and 5 months of service (rounded to 8 years).
Gratuity = (33,000 × 8 × 15) ÷ 26
Gratuity = Rs 1,52,307
Let’s calculate gratuity for an employee with a basic salary of Rs 56,000, 8 years, and 5 months of service (rounded to 8 years).
Gratuity = (56,000 × 8 × 15) ÷ 26
Gratuity = Rs 2,58,461
Let’s calculate gratuity for an employee with a basic salary of Rs 71,000, 8 years, and 5 months of service (rounded to 8 years).
Gratuity = (71,000 × 8 × 15) ÷ 26
Gratuity = Rs 3,27,692
Also Read: EPS Pension Calculation: Rs 79,000, basic salary, 17, 28, and 33 years of service, find out your monthly pension
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