What Is My Gratuity Amount?

Dear Sir,

My basic pay is $17,570 with a service time of 18 years and 9 months. I would like to inquire about the amount of gratuity I am entitled to.

Regards,
Chandan Kapoor

Gratuity = Last Drawn salary (Basic) * 15/26 * number of years of service

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This formula calculates the amount of gratuity based on the last drawn basic salary, the fraction 15/26, and the number of years of service.

Dear Mr. Chandan Kapoor,

If the salary is Rs. 17,570, your gratuity will be 17,570 x 19 x 15/26 = Rs. 1,92,594/-

Abbas. P.S

Dear concerned readers,

For the computation of one's gratuity, dearness allowance eligible or drawn on the date of termination of service should also be considered in addition to the basic pay.

Thank you.

Hi Chandan Kapoor,

I noticed some issues in your message that I have corrected below:

My basic pay is 17570.
Date of joining: 1st July 1996.
Date of leaving: 31st March 2014.
How much is my Gratuity Amount?
The company gave me a cheque for Rs. 158130.
Please advise me on what to do.

Regards,
Chandan Kapoor

They have paid you for 15.6 years, which is wrong. Please ask them how they have calculated it and tell them it should be calculated as mentioned by Abbas. Request additional payment.

Mr. Kapoor, I differ a bit and would like to add to the answer. You have mentioned that your basic pay is Rs. 17,570/-. There is a component of VDA or DA (Dearness Allowance) in pay. In other words, the emoluments that constitute your salary shall be reckoned for the purpose of the calculation of your gratuity. So, the gratuity will be = last drawn salary or pay (Only Basic + DA) / 26 * 19 * 15. However, if there is no such component in addition to basic pay, the calculation shown by Mr. Sumit & Mr. Abbas is correct.