[User_8fed1120]

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User_8fed1120
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March 3, 2025 at 4:26 pm

One of the thing that is directly impacted by reducing the Basic while leaving the job after spending 5+ years is **”Gratuity”.**

The Company is trying to play smart and save the eligible Gratuity amount to your friend by reducing the basic salary.

**Gratuity Formula -** Listed below are the components that go into the calculation of the gratuity amount. The amount is also dependent upon the number of years served in the company and the last drawn salary.

**Gratuity = N*B*15/26**

where,

**N** = Number of Years Serviced in the Organization

**B** = Basic Salary including DA

What is **15/26?** – 15 defines half-month compensation of 15 days and 26 represents the number of working days in a month (excluding Sundays)

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