AiRedHQ
Products
SolutionsIndustriesCase StudiesAboutContactStart a Project

AiRedHQ

AiRedHQ

Products first. Services with proof.

AiRedHQ is a product innovation company building practical AI, immersive technology, and modern software platforms.

Newsletter

Product updates and engineering notes are coming soon.

LinkedInGitHubYouTube

Products

  • hiARed
  • GoBazaar
  • YojIQ

Solutions

  • AI
  • Web
  • Mobile
  • UI/UX
  • AR/VR
  • Cloud

Company

  • About
  • Innovation Lab
  • Careers
  • Contact

Resources

  • Blog
  • Calculators
  • Risk Profiler
  • Case Studies
  • Editorial Policy
  • Privacy Policy
  • Terms

© 2026 AiRedHQ. All rights reserved.

Home/Calculators/Gratuity
Free financial calculator

Gratuity Calculator

Estimate gratuity using last drawn eligible salary and completed service. Change every input and see the estimate update immediately.

Rules that apply

Five-year service rule

Five years of continuous service is normally required, except for death or disablement.

Formula depends on coverage

Covered establishments use 15/26 of eligible monthly salary; a 15/30 convention is shown for non-covered establishments.

Statutory ceiling

The estimate is capped at the current ₹20 lakh statutory ceiling.

Adjust your assumptions

₹
₹0₹20,00,000
years
040

Your estimate

₹2,88,462

Estimated gratuity

Completed service

10

Eligible salary

₹50,000

Statutory ceiling

₹20,00,000

Confirm establishment coverage, eligible salary and completed-service rounding with the employer.

Educational estimate only. Methodology 2026.08. This is not a return promise, loan offer, tax filing or financial recommendation.

Understanding the calculator

Gratuity Calculator: what it calculates.

Gratuity Calculator turns the assumptions shown above into an educational estimate. It exposes the inputs, method and limitations instead of presenting an unexplained answer.

Estimate gratuity using last drawn eligible salary and completed service. The result updates locally as an input changes, making it useful for scenario comparison rather than prediction.

Methodology

How the calculation works.

Result = disclosed Gratuity method applied to your inputs
  • Inputs remain unrounded during calculation.
  • Displayed currency values are rounded only for readability.
  • Policy-driven assumptions are dated and linked to primary sources where applicable.

Worked example. Use the default Gratuity scenario as a starting point, then adjust each field to match your own assumptions.

How to use it

  1. 1.Enter values that reflect the scenario you want to test.
  2. 2.Move one assumption at a time to understand its effect.
  3. 3.Compare nominal values with today’s purchasing power where available.
  4. 4.Read the warnings and verify current rules before acting.

What it helps with

  • Updates immediately without a network request.
  • Keeps assumptions visible and editable.
  • Supports comparison instead of hiding methodology.

What it does not include

  • Results are estimates, not guarantees or approvals.
  • Unentered taxes, fees and personal circumstances are excluded.
  • Rules and rates can change after the stated review date.

Rule basis

Gratuity rules reviewed 2026-27

Effective 2026-04-01. Reviewed 2026-08-10.

Review again after 2027-03-31.

Policy-linked estimates can become stale. Confirm current eligibility, rates, limits and filing treatment before acting.

  • Ministry of Labour - Payment of Gratuity Act

Common questions.

Why does Gratuity Act coverage matter?

Covered establishments generally use the statutory 15/26 formula; this calculator separately identifies the commonly used non-covered convention.

Is five years of service always required?

Five years is normally required, but the statutory condition does not apply in specified death or disablement cases.

What is a Gratuity Calculator?

It is an educational tool that applies the disclosed gratuity formula method to the assumptions you enter.

Are the results guaranteed?

No. Results are estimates, not forecasts, approvals, quotations or guarantees.

Why should I change the assumptions?

Testing conservative and optimistic inputs exposes uncertainty instead of hiding it behind one number.

Does it include tax and fees?

Only when a tax or fee is shown as an explicit input or result. Otherwise it is excluded.

How accurate is the calculator?

The mathematics follows the stated methodology, while real outcomes depend on rates, timing, rules, fees and circumstances.

Can I use this result as financial advice?

No. Use it for education and scenario comparison, then verify decisions with official documents or a qualified professional.

Why is inflation shown?

Inflation translates a future amount into approximate present-day purchasing power. The default 6% is editable and is not a forecast.

How often should I recalculate?

Recalculate when rates, income, contributions, rules, goals or repayment terms change.

Can the result differ from a bank or platform?

Yes. Institutions may use different compounding dates, rounding, charges and eligibility rules.

Is my data uploaded?

No. Calculations run locally in your browser and the input values are not sent to a calculation server.

Continue calculating

Sukanya Samriddhi Calculator

PPF Calculator

EPF Calculator

NPS Calculator