HOW TO CALCULATE GRATUITY: INTERESTRING CALCULATION
The gratuity amount depends upon the tenure of service and last drawn
salary. It is calculated according to this formula: Last drawn salary
(basic salary plus dearness allowance) X number of completed years of
service X 15/26.According to this formula, the time period of over six
months or more is considered as one year.This means if you have
completed five years and seven months of service, the number of years
would be considered as six years for calculation of gratuity benefit.On
the other hand, if the service period is five years and five months, for
gratuity calculation it will be considered five years
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