Taxes
Gratuity payable
Fifteen days of basic salary plus DA for every completed year of service.
The Formula
Gratuity = (15 / 26) x salary x years
Fifteen days of basic salary plus DA for every completed year of service.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| S | Monthly salary | currency | Last drawn basic pay plus dearness allowance. |
| Y | Completed years | years | Completed years of service. |
What Each Symbol Means
Scurrency
Monthly salary
Last drawn basic pay plus dearness allowance.
Yyears
Completed years
Completed years of service.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate gratuity page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Gratuity, filed under Finance. Every number the guide produces comes from substituting into this one line.