To calculate gratuity for employees with limited contracts, follow these steps: 1. Determine the daily rate by dividing the monthly wage by 30. 2. Multiply the daily rate by either 21 or 30, depending on the terms of the employment contract. 3. The resulting amount represents the gratuity payment the employee will receive for each year of service. This calculation method ensures that employees receive a fair and proportional gratuity payment based on their monthly wage and length of service.