"Wages" as defined under Section 2(88) of the Code on Social Security, 2020 — not just Basic + DA as under the old Payment of Gratuity Act, 1972. Allowances (HRA, conveyance, etc.) are included unless they exceed 50% of total remuneration, in which case the excess is added back into wages.

6 months or more counts as one full year

Formula: (Salary × 15 × Years of Service) / 26
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