Gratuity Calculator
Calculate gratuity payable to an employee under the Indian Payment of Gratuity Act.
What is a Gratuity Calculator
A Gratuity Calculator estimates the lump-sum amount payable to an employee on retirement, resignation or exit, based on the last drawn salary and total years of service under Indian gratuity rules.
Gratuity Formula
Gratuity = (15 × Last Drawn Salary × Years) ÷ 26
Years = completed years of service
26 = working days in a month (statutory basis)
Gratuity Calculation Example
Estimate your retirement benefit
Plan finances before leaving a job
Check eligibility at a glance
Understand how service years matter
Eligibility usually after 5 years of service
Based on last drawn Basic + DA
Often tax-exempt up to a statutory limit
Paid on retirement, resignation or exit
This is an estimate based on the standard formula for employees covered under the Payment of Gratuity Act. Actual gratuity may differ based on employer policy and statutory caps. Consult your HR or a professional for exact figures.
Frequently Asked Questions
Gratuity is a lump-sum benefit paid by an employer to an employee as a token of appreciation for long service, under the Payment of Gratuity Act.
Generally, an employee becomes eligible after completing 5 continuous years of service with an employer.
For covered employees, gratuity = (15 × last drawn salary × years of service) ÷ 26.
The last drawn salary typically includes Basic pay plus Dearness Allowance (DA).