Gratuity is a collectable amount for an employee, paid as a gratitude by the organization. It is also known as the end of service benefits. An individual who has worked in an organization for a minimum period of 5 years is eligible for this benefit. Gratuity is calculated based on his/her average salary, dearness allowance and number of years he/she worked in the organization. This gratuity calculator helps the common salaried people to calculate their gratuity amount.
Calculate gratuity amount for a given Basic Pay = 17500, DA = 1500 and Years of Service = 25
= ( ( 17500 + 1500 ) * 15 * 25 ) / 26
= ( 19000 * 375 ) / 26
= 7125000 / 26
Therefore, gratuity amount is 274038.461