Gratuity = (Last drawn basic salary + dearness allowance) × 15 × number of completed years of service ÷ 26
Use 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 less than 6 months in the last year, ignore that year
For monthly salary, 26 represents working days in a month
Gratuity is usually capped at the applicable legal maximum
For example: if basic salary + dearness allowance = 50,000 and service = 10 years, gratuity = 50,000 × 15 × 10 ÷ 26
Gratuity = 288,461.54 in that example