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Gratuity Calculator

Free gratuity calculator — work out your gratuity from last drawn salary and years of service, for employees covered or not covered by the Gratuity Act.

Estimated gratuity

₹3,17,308

Formula steps

Service counted: 11 years (10 yrs 7 months, more than 6 months rounds up)

₹50,000 × 15 ÷ 26 × 11 = ₹3,17,308

Covered by the Act: gratuity = last drawn salary (basic + DA) × 15 ÷ 26 × years of service, where a part year above 6 months counts as a full year, up to a maximum of ₹20 lakh. Not covered: salary × 15 ÷ 30 × completed years (an assumption based on the income-tax rule; fractions are ignored, and the ₹20 lakh limit is not applied).

Rules used: the Ministry of Labour & Employment FAQs on the Labour Codes (labour.gov.in) say gratuity follows the new Code from 21 Nov 2025, needs 5 years of continuous service except for death, disablement and expiry of a fixed-term contract, and has a maximum of ₹20 lakh as currently notified. Fixed-term employees are eligible after 1 year, paid pro rata. The 26-day month and the tax exemption for employees not covered are not checked against an official page here, so treat them as assumptions. The new Labour Codes also redefine "wages", which can raise the salary used; confirm with your employer.

This is an estimate only and not financial, legal or tax advice. Your employer's actual figure can differ.

What is the Gratuity Calculator?

Gratuity is a lump sum an employer pays when you leave a job after long service. This calculator estimates it from your last drawn monthly salary (basic plus dearness allowance) and your length of service, using the 15/26 formula for employees covered by the gratuity law and the 15/30 formula for those who are not.

Choose whether you are covered by the Act, pick the reason for exit, then enter your salary, years and extra months. The page shows each step: how many years are counted, the multiplication, and whether the ₹20 lakh ceiling applied. Everything runs in your browser.

How to use it

  1. 1

    Pick the formula

    Choose Covered (15/26) or Not covered (15/30).

  2. 2

    Pick the reason

    Select regular exit, fixed-term contract, or death or disablement.

  3. 3

    Enter salary

    Type your last drawn monthly basic plus dearness allowance.

  4. 4

    Enter service

    Add completed years and extra months (0 to 11).

  5. 5

    Read the result

    Check the estimate and the formula steps shown beside the inputs.

Features

  • Both formulas

    Covered employees use salary × 15 ÷ 26 × years; employees not covered use salary × 15 ÷ 30 × completed years.

  • Years and months input

    For covered employees, a part year of more than 6 months counts as a full year and 6 months or less is ignored.

  • Shows the steps

    You see the counted years and the working, so you can check the number against your employer's.

  • ₹20 lakh ceiling

    For covered employees the result is limited to ₹20 lakh, the maximum currently notified by the Central Government.

  • Eligibility check

    Regular exit needs 5 years of service; fixed-term contracts need 1 year; death or disablement has no minimum.

Popular uses

  • Planning a resignation

    See roughly what you would receive before you give notice.

  • Retirement planning

    Estimate gratuity as part of your retirement payout.

  • Checking your employer's figure

    Compare the steps with the amount in your full and final settlement.

  • Fixed-term contracts

    See what a one-year contract could earn under the new rules.

Frequently asked questions

What is the gratuity formula?

For employees covered by the Act, gratuity is last drawn salary (basic + DA) × 15 ÷ 26 × years of service. The 26 is the number of working days assumed in a month. Employees not covered commonly use 15 ÷ 30 instead.

How many years of service are needed?

Five years of continuous service for a regular exit. The Ministry of Labour's FAQs say this is not needed on death, disablement or expiry of a fixed-term contract, and fixed-term employees become eligible after one year, paid pro rata.

Is the 6 months rule applied?

Yes for covered employees: service above 6 months in the last year is rounded up to a full year, so 10 years 7 months counts as 11 years.

What is the maximum gratuity?

The Ministry of Labour's FAQs state the maximum as notified by the Central Government, currently ₹20 lakh. The calculator caps covered employees at that amount.

Is this exact?

No. It is an estimate only and not financial, legal or tax advice. The new Labour Codes also redefine wages, so your employer's figure can differ.

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