Gratuity Calculator
Gratuity is your employer's way of saying thanks for long service. You get it after 5+ years with the same company.
Your Employment Details
For employees covered under the Payment of Gratuity Act, 1972
Basic salary + Dearness Allowance (if applicable)
Need at least 5 years of continuous service to qualify
Your Gratuity Amount
What is Gratuity and Why Should You Care?
Gratuity is basically your employer saying "thanks for sticking around" in cash form. You get it after 5+ years with the same company. The government mandates it under the Payment of Gratuity Act, so most companies have to pay it. It's a nice lump sum when you retire or move to a new job.
Gratuity Formula & Example
Gratuity = (Last drawn salary × 15 × Years of service) ÷ 26
Example: ₹50,000 basic salary, 10 years of service → (50,000 × 15 × 10) ÷ 26 = ₹2,88,461
Note: The last year counts as a full year if you've worked more than 6 months. Less than 6 months? That half-year doesn't count toward gratuity calculation.
Frequently Asked Questions
About the Gratuity Calculator
Gratuity is your employer's way of saying thanks for long service. You get it after 5+ years with the same company.
Formula
Reference Table
| Category | Value |
|---|---|
| Years | ₹50,000 Salary |
| 10 years | ₹2.88L |
| 15 years | ₹4.33L |
| 20 years | ₹5.77L |