How is gratuity calculated?

Wondering how is gratuity calculated? There is a gratuity calculation formula which is based on the 15 days of last drawn salary for each completed year of service or part thereof in excess of six months. Gratuity calculator formula 2019 for employees covered under Act: Gratuity = last drawn salary — 15/26 — no. Here is the gratuity eligibility for such cases: Less than one year of service: 2 times of basic pay One year or more but less than 5 years of service: 6 times of basic pay 5 years or more but less than 11 years of service: 12 times of basic pay 11 years or more but less than 20 years of service: 20 times of basic pay 20 years or more of service: Half of emoluments for every completed 6 monthly period subject to maximum of 33 times of emoluments How is gratuity calculated in case of retirement As per the government's pensioner website, the gratuity amount in case of retirement is based on one-fourth of one month's basic pay plus dearness allowance drawn before retirement for each completed six monthly period of a qualifying service. For non-government employees, income tax rules are applicable on the gratuity amount depending on whether or not the employee is covered under the Payment of Gratuity Act, 1972 or not.