Gratuity calculation

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EMPLOYEE
22 Points Posted on 04 December 2020
in Gratuity calculation why we put 15/26.
please clarify.
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On 04 December 2020 at 17:40 Report
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This discussion clarifies the common formula used for gratuity calculation: Gratuity = (Years of Service) * (Last Drawn Salary) * 15/26. The 15 represents the number of days' wages for which gratuity is paid each year, while 26 is used as the number of days in a month for this calculation. This method ensures fair compensation based on tenure and salary.

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574 Points Posted on 04 December 2020
Gratuity is dependent upon the total number of years served in the company and the last drawn salary.

If A is (number of years of service in a company) + B is (last drawn salary) {Basic Salary+ Dearness Allowance}

Then, Gratuity = A*B*15/26 ; 15 being wages for 15 days and 26 being the days of the month.
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On 04 December 2020 at 21:01
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Accountant
3662 Points Posted on 06 December 2020
Good explanation
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On 06 December 2020 at 02:28
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574 Points Posted on 06 December 2020
Thank you
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On 06 December 2020 at 13:14

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