- Last basic + DA
- ₹50,000
- Years of service
- 20
- Gratuity
- ₹5,76,923
- If service is 20 years 7 months
- ₹6,05,769
- Tax-free part (private sector)
- ₹5,76,923
If your employer is not covered by the Act
Employers with fewer than 10 staff may use the 15/30 formula on completed years: ₹5,00,000 in this case.