Gratuity Calculation: What will be your gratuity for Rs 39,000, Rs 59,000, and Rs 66,000 last-drawn basic salary after 7 years and 7 months of service?
Published on 18/07/2025 01:24 PM
The number of years and the last-drawn basic salary of an employee are used to calculate the gratuity amount. Gratuity is a token of appreciation from an employer to an employee for their long-term service, usually after a minimum of 5 years of service. To your surprise, any service period of 6 months or more is rounded up to a full year. Let's calculate the gratuity amount for employees with last-drawn basic salaries of Rs 39,000, Rs 59,000, and Rs 66,000 last-drawn basic salary after 7 years and 7 months of service.
Gratuity is payable in the following cases:
The number of years and the last-drawn basic salary of an employee are used to calculate the gratuity amount.
If a company falls under the Payment of Gratuity Act of 1972, it cannot count itself out.
(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.
Yes, it is compulsory to complete five years of continuous service to apply for gratuity.
Let’s calculate gratuity for an employee with a basic salary of Rs 39,000, 7 years, and 7 months of service (rounded to 8 years).
Gratuity = (39,000 × 8 × 15) ÷ 26
Gratuity = Rs 1,80,000
Let’s calculate gratuity for an employee with a basic salary of Rs 59,000, 7 years, and 7 months of service (rounded to 8 years).
Gratuity = (59,000 × 8 × 15) ÷ 26
Gratuity = Rs 2,72,307
Let’s calculate gratuity for an employee with a basic salary of Rs 66,000, 7 years, and 7 months of service (rounded to 8 years).
Gratuity = (66,000 × 8 × 15) ÷ 26
Gratuity = Rs 3,04,615
Also Read: Rs 5,000 SIP Vs Rs 5,00,000 Lump Sum: Which can generate a higher corpus in 35 years?
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