Gratuity Calculator

Gratuity Calculator

Calculate your estimated gratuity based on salary and completed service

Employment Details

₹50,000
₹0
10 Years

Gratuity Result

Estimated Gratuity
₹2,88,462
Estimated amount payable under the standard formula
Basic + DA ₹50,000
Service 10 Years
Formula 15/26

Gratuity Calculation Breakdown

Particular Value

Gratuity Calculator Formula

Gratuity = (Last Drawn Salary × 15 × Completed Years) ÷ 26

For eligible employees covered under the Payment of Gratuity Act, the standard formula generally uses 15 days' wages for every completed year of service.

For monthly-rated employees, the calculation commonly uses 15 ÷ 26 of the applicable last drawn wages for each completed year.

Important Gratuity Rule

Under the standard rule, service of more than six months in a particular year is generally rounded up to the next completed year for gratuity calculation.

Example: 10 years 7 months of service is treated as 11 years for the standard calculation, while 10 years 5 months is treated as 10 years.

The calculator therefore uses the additional months to determine the completed service years used in the estimate.

What is Gratuity?

Gratuity is a lump-sum benefit generally paid by an employer to an eligible employee when the employment ends after completing the required period of service, subject to applicable law.

The amount generally depends on the employee's last drawn applicable salary and completed years of service.

This calculator is designed to give a quick estimate and should not be treated as a final legal or payroll calculation.

Disclaimer: This calculator provides an estimate based on the standard gratuity formula and the values entered by the user. Actual gratuity may differ depending on eligibility, employment category, applicable law, salary components, employer policy and other circumstances. Applicable statutory limits and rules can also change.
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