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Gratuity Calculator

Gratuity is a lump sum many Indian employers pay when you leave after long service. Enter your last drawn monthly basic pay plus dearness allowance and your length of service, say whether your employer is covered by the Payment of Gratuity Act, and the calculator applies the 15/26 formula (or 15/30 if not covered), rounds the service period the way the Act does and caps the result at a ceiling you can edit.

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Estimate Your Gratuity

Uses the standard Indian formula as an estimate. The ceiling is an editable default and rules change, so confirm the current limit and your eligibility with your employer.

0 to 11.
Enter 0 for no cap. Check the current limit.

How to Use the Gratuity Calculator

  1. Enter your last drawn monthly basic pay plus DA.
  2. Choose whether your employer is covered by the Payment of Gratuity Act.
  3. Enter your completed years and extra months of service.
  4. Check the ceiling, then press Calculate.

About This Tool

Employees in India planning a job change or retirement, HR staff checking a settlement, and anyone wondering whether they have completed enough service.

Input: Numbers  ·  Output: Estimated gratuity.

Features and Limitations

Features

  • 15/26 formula for covered employers, 15/30 for others.
  • Rounds service over 6 months up to a full year, as the Act does.
  • Editable ceiling and a clear 5-year eligibility check.
  • Shows the formula with your numbers.

Limitations

  • An estimate only: your employer's policy, court rulings and future amendments can change the amount.
  • Tax on gratuity is not calculated.
  • Seasonal establishments and special cases are not covered.
  • An estimate only, not legal or financial advice.
  • Results are computed in your browser; nothing you enter is sent to a server.

Example

Basic + DA of ₹50,000 and 10 years 7 months of service count as 11 years for a covered employer: 15 × 50,000 × 11 ÷ 26 ≈ ₹3,17,308.

Frequently Asked Questions

What is the gratuity formula?

For employers covered by the Payment of Gratuity Act: Gratuity = 15 × last drawn monthly (basic + DA) × years of service ÷ 26. The 26 represents working days in a month and 15 the days of wages per year of service.

How are partial years counted?

Under the Act, a final part-year of more than 6 months counts as a full year, so 10 years 7 months counts as 11 years, while 10 years 6 months counts as 10.

Am I eligible with less than 5 years?

Usually gratuity needs 5 years of continuous service, except on death or disablement. Some court decisions have counted 4 years plus 240 days; check with your employer.

Is there a maximum amount?

Yes, there is a statutory ceiling that has been raised over time. The calculator uses an editable default; replace it with the current limit that applies to you.

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