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HOW TO CALCULATE GRATUITY: INTERESTRING CALCULATION

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