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Accounting & Payroll 1 min read

Gratuity calculation: wages, service and model limits

Understand the arithmetic in a gratuity estimate and the eligibility details it cannot determine.

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· Updated Oct 24, 2026

Understand the arithmetic in a gratuity estimate and the eligibility details it cannot determine.

Establish the wage and service basis

Collect wage components, employment dates, contract type and any applicable employer scheme. A salary total or rounded number of years can hide details that matter to an entitlement assessment.

Understand the model

The Gratuity Calculator applies its stated salary, service and working-days assumptions. For a purely illustrative wage input of 26,000 and five years, a 15/26 model gives 75,000. This arithmetic does not establish eligibility or the legally applicable wage definition.

Verify the applicable rules

Consult the Ministry of Labour and Employment, applicable rules and employer records. The Ministry publishes guidance on the Social Security Code and employment categories. Contract type, service circumstances, caps and tax treatment require separate checks; this page does not provide a current legal determination.

Reconcile an estimate

Compare your input basis and service calculation with the employer’s statement. Resolve differences in wage components, rounding and applicable provisions rather than treating one displayed total as exact entitlement. Keep the calculation and source records for a qualified adviser if needed.

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