Gratuity Calculator
Calculate your estimated gratuity based on salary and completed service
Employment Details
Gratuity Result
Gratuity Calculation Breakdown
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Gratuity Calculator Formula
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.
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.