I will discuss Gratuity in this blog. Before determining the formula of gratuity, we will know what the rule of gratuity was before and what is the rule now. According to DCRB 1971 and DCRB 1974, the maximum gratuity rule was = (Last Basic Pay +DA) ×15. The question is why is it multiplied by 15?  According to DCRB 1974, the 6 months service period of qualifying service of an employee is calculated as 1 unit and his 1 year qualifying service is 2 units.  As per DCRB 1974 Maximum Qualifying Service will be 30 (in case of Gratuity) and maximum Units of Service will be 60.  Gratuity is maximum Units of Service One-fourth (1/4) i.e. 60÷4=15 times.  So multiply by 15 in the above formula. It was then notified through a Revised Order of DCRB 1974 {of which G.O No.  5225-F dt.  07.06.1976} Maximum Qualifying Service (in case of Gratuity) has been increased from 30 to 33.  As a result, the maximum Units of Service has also increased from 60 to 66. ...