Gratuity Calculation formula - why 15/26 days used?

gauravtomar4397@gmail.com
Dear All,
I want to confirm what is the role of 15 days and also 26 in below mention formula. Please clear my confusion ASAP.
Gratuity Calculations: [(Basic Pay+DA)*15 Days*No. of years of Service] / 26.
kumaracme
to arrive at a yearly gratuity amount you need to multiply the monthly salary with 15/26 as stipulated in The payment of Gratuity act.
gauravtomar4397@gmail.com
Dear KUMARACME,
Thanks for your reply but My question is what is the main role of 15 days & 26 in above formula, pls clear my confusion.
siddannagouda
Dear Gourav,
as above said, we have to pay the Gratuity as per the Gratuity act said, we need to multiply the monthly salary as 15 days on 26 days. into the no of services.
ravinderbhardwaj11
Dear Mr. Gaurav,
Normally there are 26 working days in a Month excluding Sundays. The Sundays are out of preview while calculating amount of Gratuity in standard formula mentioned in Payment of Gratuity Act.
Regards,
Ravinder Bhardwaj
vineet_28387
Dear Gaurav,
The formula is 26/15*No. of year of services.
Thanks,
Vineet
Samuel R
Hi Gaurav,
26 is the total no. of working days in the organization and 15 is the no. of days you have worked out of those 26 days. Hope it's clear now! You can refer the link for Gratuity Payment Act https://www.stacowiki.in/en/acts/st-...tuity-act1972/
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