Gratuity Calculator

Formula

To calculate the gratuity amount:

\[ G = \frac{S \times Y \times 15}{26} \]

Where:

$G$ is the Gratuity Amount ($)
$S$ is the Last Drawn Salary ($)
$Y$ is the Number of Completed Years of Service

What is Gratuity?

Gratuity is a lump sum payment made by an employer to an employee as a token of appreciation for the services rendered by the employee. It is typically given at the time of retirement or when the employee leaves the organization after completing a certain number of years of service. The gratuity amount is calculated based on the last drawn salary and the number of completed years of service. It serves as a financial benefit to support the employee after their tenure with the organization.

Example Calculation

Let's assume the following values:

Last Drawn Salary ($S$) = $5000
Years of Service ($Y$) = 10

Using the formula:

\[ G = \frac{5000 \times 10 \times 15}{26} = 28846.15 \]

The Gratuity Amount is $28,846.15.