Gratuity is a lump sum paid by an employer as a token of appreciation for completing 5+ years of continuous service.
Where: Last Drawn Salary = Basic + DA. We divide by 26 because there are typically 26 working days in a month, and multiply by 15 because you get 15 days of salary for every year worked.
You leave a company after working there for exactly 10 years. Your last drawn monthly Basic Salary + Dearness Allowance (DA) is ₹50,000. Your gratuity payout will be calculated as (15 × 50,000 × 10) / 26, which equals ₹2,88,461.