Gratuity Calculator
Calculate gratuity based on the Payment of Gratuity Act, 1972. Formula: Gratuity = (15 × Last Drawn Salary × Years of Service) / 26.
Gratuity Payable
₹4,32,692
Formula: (15 × Salary × Years) / 26
Monthly Salary
₹50,000
Gratuity
₹4,32,692
Schedule
| Calculation Component | Value |
|---|---|
| Monthly Salary Phase | 50000 |
| Service Years Equivalent | 15 |
| Calculated Gratuity (15/26 factor) | 432692 |
What is Gratuity?
A Gratuity Calculator helps employees estimate the lump-sum amount they may receive from their employer when leaving a job, provided they meet the eligibility conditions. Gratuity is a financial benefit given by employers as a reward for long-term service.
It is commonly applicable to employees who have worked with the same organization for at least 5 years.
How Gratuity Works
Gratuity is calculated based on the last drawn salary (usually Basic + Dearness Allowance) and the total years of service. If remaining months of service are 6 or more, the year is rounded up.
Eligibility After 5 Years
Employees qualify after 5 years of continuous service (4.5+ years rounds up)
Last Drawn Salary Based
Calculated on Basic + Dearness Allowance at the time of leaving
One-Time Lump Sum
Paid as a single payment upon leaving the company
Key Benefits
Reward for Service
Financial recognition for long-term commitment
Predictable Calculation
Standard formula makes estimation straightforward
Tax Benefits
Gratuity up to certain limits is tax-exempt