Gratuity Calculator

For employers covered by the Act the formula is last drawn monthly salary (basic plus dearness allowance) times 15 divided by 26, times the number of years of service. The 15/26 reflects 15 days of wages for each completed year, using a 26-day month because Sundays are treated as paid rest days. A part year of 6 months or more is rounded up to the next full year, so 10 years and 7 months counts as 11 years.

Gratuity is generally payable after 5 years of continuous service with the same employer. This calculator marks service of 5 years or more as eligible. The 5-year requirement is waived if service ends due to death or disablement. It still shows an amount for shorter service so you can preview the figure.

Establishments with 10 or more employees are usually covered by the Act and use the 15/26 formula with part years of 6 months or more rounded up. Employers not covered by the Act commonly use 15 days of wages on a 30-day month (15/30) and count only fully completed years, with no rounding up. Toggle the covered option to compare both.

Use the last drawn monthly salary made up of basic pay plus dearness allowance. Allowances such as house rent, conveyance, bonuses and overtime are not included in the gratuity calculation.

No. The calculation runs entirely in your browser. Nothing you type is stored, logged or sent to a server, so your salary details stay private on your device.

This tool shows the formula amount only. Under the Act tax-exempt gratuity is capped (currently 20 lakh for many employees), and amounts above the ceiling may be taxable. Check the current limit and your tax rules for your exact situation.