Question
An employee retires after 18 years and 7 months of
continuous service. His last drawn monthly wages consist of: • Basic = ₹22,400 • DA = ₹3,600 Calculate his gratuity.Solution
ATQ,
Last Drawn Wages = Basic + DA = 22,400 + 3,600 = ₹26,000 Years of Service = 18 years 7 months → 19 years (rounded up) Formula: (15 × Last Drawn Wages × Years of Service) / 26 = (15 × 26,000 × 19) / 26 = ₹2,85,000 Gratuity Payable = ₹2,85,000
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