How to use it
- 1.Enter your last drawn monthly Basic + DA.
- 2.Enter your completed years of service.
- 3.Select whether your employer is covered by the Gratuity Act.
- 4.Select the death or disablement exception only if it applies.
Updated
Gratuity Calculator
The gratuity calculator multiplies 15 days' salary by your years of service, using a 26-day month for employers covered by the Act and a 30-day month for those that are not, and caps the result at the ceiling used here. Change every input and see the estimate update immediately.
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.
Results are estimates for learning and planning only. Tax rules, interest rates and scheme terms change from time to time, and your actual figures may differ. Please talk to a qualified financial advisor or chartered accountant before making any financial decision.
Gratuity Calculator: what it calculates.
Gratuity is a lump sum an employer pays when an employee leaves after long service, usually five years or more. Under the Payment of Gratuity Act it is based on the last drawn Basic Salary + DA and the completed years of service, subject to a ceiling.
The gratuity calculator multiplies 15 days' salary by your years of service, using a 26-day month for employers covered by the Act and a 30-day month for those that are not, and caps the result at the ceiling used here.
How the calculation works.
Gratuity = Last drawn monthly salary × 15 ÷ 26 × years of service
- Salary means Basic + DA.
- Employers not covered by the Act are shown using 15 ÷ 30 instead of 15 ÷ 26.
- The ceiling used here is ₹20 lakh; the government can revise it.
- Five years of continuous service is normally needed, except on death or disablement.
Worked example. With a last drawn Basic + DA of ₹50,000 and 10 years of service at a covered employer, gratuity is ₹50,000 × 15 ÷ 26 × 10, about ₹2,88,462. Using the 15 ÷ 30 convention for a non-covered employer gives ₹2,50,000.
What it helps with
- Applies the statutory formula and ceiling.
- Shows the difference between covered and non-covered employers.
- Flags when the five-year condition is not met.
What it does not include
- Rounding of a final part-year (over six months counts as a full year under the Act) is not applied; enter the years your employer will count.
- Tax exemption on gratuity is not calculated.
- Employer policies and the ceiling can change.
- The result is an estimate; confirm with your employer.
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.
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.