Gratuity Calculation formula - why 15/26 days used?

Dear All,

I want to confirm the roles of 15 days and 26 in the formula mentioned below. Please clarify my confusion as soon as possible.

Gratuity Calculations: [(Basic Pay + DA) * 15 Days * No. of years of Service] / 26.

To arrive at a yearly gratuity amount, you need to multiply the monthly salary by 15/26 as stipulated in The Payment of Gratuity Act.

Dear KUMARACME,

Thank you for your reply, but my question is: what is the main role of 15 days and 26 in the above formula? Please clear my confusion.

Kind regards,

[User's Name]

Dear Gourav,

As mentioned above, we are required to pay Gratuity in accordance with the Gratuity Act. As per the Act, we need to calculate the gratuity by multiplying the monthly salary by 15 days and then multiplying that by the number of years of service.

Thank you.

Dear Mr. Gaurav,

Normally, there are 26 working days in a month, excluding Sundays. Sundays are not considered when calculating the amount of Gratuity in the standard formula mentioned in the Payment of Gratuity Act.

Regards,
Ravinder Bhardwaj

Dear Gaurav,

The formula is 26/15 * Number of years of service.

Thanks,
Vineet

Hi Gaurav,

26 is the total number of working days in the organization, and 15 is the number of days you have worked out of those 26 days. Hope it's clear now! You can refer to the link for the Gratuity Payment Act: https://www.stacowiki.in/en/acts/st-...tuity-act1972/