Gratuity Calculator

Calculate exact gratuity amount based on your basic salary and years of service as per Payment of Gratuity Act, 1972.

Your monthly basic salary.
Monthly Dearness Allowance component.
Yr
Completed years of service.
Mo
Months beyond completed years (0-11).

Eligibility

Minimum 5 years of continuous service required to claim gratuity. Max limit: ₹20 lakh.

Gratuity Amount

₹ 0

Based on 0 completed years of service

Salary

Last Drawn Salary

0

Service

Completed Years

0 Years

Total

Total Service

0 Mo

Gratuity Growth Over Years

Documentation

How Gratuity Works

Gratuity is a benefit paid by an employer to an employee for services rendered over a period of time. It's governed by the Payment of Gratuity Act, 1972.

Eligibility Criteria

"Employee must have completed at least 5 years of continuous service with the same employer."

The Formula

Gratuity = Salary × 15 × Years
26

Where: Salary = Basic + DA, 15 = days/year (half month), 26 = working days/month.

Last Updated: January 2026

Disclaimer: This tool provides an estimate based on current Indian Gratuity Act rules. Actual payout may vary depending on company policy, tax laws (max tax-free limit is ₹20 Lakhs), and service terms. Please consult a financial advisor or HR for exact figures.

8th CPC may increase your gratuity base

Higher revised basic pay under the 8th Pay Commission will raise your last-drawn salary, directly impacting gratuity payout.

Estimate 8th CPC Salary
How to Use

About the Gratuity Calculator

What it calculates

Estimates gratuity payout under the Indian Payment of Gratuity Act based on last drawn salary and years of service.

When to use it

Use when leaving a job or planning retirement to estimate statutory gratuity entitlement in India.

Formula

Gratuity = (Last drawn salary × 15 × years of service) / 26

Example

With ₹50,000 last drawn salary and 10 years of service, gratuity is approximately ₹2,88,462.

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