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
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
Calculation Method
Formula:
Where:
- S = Last drawn monthly salary (Basic + DA)
- T = Total years of service
- 15 = 15 days of salary for each completed year
- 26 = Number of working days in a month
Assumptions:
- ✓ Private sector max: ₹20 lakh
- ✓ Government max: ₹25 lakh
- ✓ Months ≥ 6 rounded up to next year
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
Important Disclaimer
This calculator provides an estimate based on standard gratuity rules and assumptions. Actual gratuity payouts may vary depending on employer policies, employment contracts, and applicable laws.
Always verify the final amount with your employer or HR department.