Use the gratuity formula: Gratuity = (Last drawn basic salary + dearness allowance) × 15 × number of years of service ÷ 26
Count only completed years of service
If service is more than 6 months in the last year, round it up to the next full year
If service is 6 months or less in the last year, ignore the partial year
Use the last drawn basic salary and dearness allowance only
Multiply the monthly amount by 15
Divide the result by 26
Apply any company policy or legal cap if applicable
Verify eligibility based on minimum years of service required by law or policy