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Gratuity calculator

Gratuity is a lump sum many employers in India pay when you leave after long service. Estimate it from your last salary and years worked.

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Is your employer covered by India's gratuity law?
₹
Basic pay plus dearness allowance, as last drawn.
years
0 to 60 years.
months
Months beyond the completed years, 0 to 11.
More assumptions 4
₹
The most that can be paid under the rules that apply to you. Check the current limit.
days
The law gives 15. Your employer's scheme may give more. 1 to 60.
days
The law uses 26 working days for monthly-paid employees.
days
Usually 30 for employers not covered by the law.
Estimated gratuity
₹2,88,462
2.88 lakh

₹50,000 × 15 ÷ 26 × 10 years is about ₹2,88,462.

How it is worked out
Last monthly salary₹50,000
Years counted10 years
Days of salary a year15 of 26
Estimated gratuity₹2,88,462
Illustrative estimate using the gratuity formula in India's Code on Social Security, 2020, which replaced the Payment of Gratuity Act, 1972 from 21 November 2025. Your employer's scheme, tax treatment and the current maximum may differ; check with your employer. Not tax or legal advice.

How it's calculated

Covered by the law: gratuity = salary × 15 ÷ 26 × years Not covered: gratuity = salary × 15 ÷ 30 × completed years

Salary is the last monthly wages: basic pay plus dearness allowance. If your other allowances are more than half of your total pay, the part above half also counts as wages. Under the law, a final part year of more than six months counts as a full year. Gratuity cannot exceed the maximum set by the rules.

Assumptions

  • The 15 ÷ 26 rule is for monthly-paid employees covered by India's gratuity law (the Code on Social Security, 2020, which replaced the Payment of Gratuity Act, 1972 from 21 November 2025). Both numbers can be changed under More assumptions if your rules differ.
  • Permanent employees usually need five years of continuous service, except on death or disablement. Since 21 November 2025, fixed-term employees qualify pro rata after one year.
  • The maximum is the figure you enter; check the current limit for your situation.
  • Tax on gratuity is not included.

Worked example

A last salary of 50,000 rupees a month and 10 years of service under the law give 50,000 × 15 ÷ 26 × 10, about 2,88,462 rupees.

Questions

Why divide by 26?

Under the law, a month is taken as 26 working days, so 15 days' wages is 15 ÷ 26 of a month's salary.

Does 4 years and 8 months count as 5 years?

Under the law, more than six months in the final year rounds up. Whether you qualify with under five full years depends on your case; check with your employer.

Which salary counts?

Your last drawn basic pay plus dearness allowance. Since the Labour Codes took effect, if allowances such as house rent are more than half of your total pay, the amount above half is added to wages for gratuity.

I am on a fixed-term contract. Do I get gratuity?

Since 21 November 2025, fixed-term employees qualify after one year of continuous service, in proportion to the time worked. Enter your years and months as usual.

What if my employer is not covered by the law?

Choose "Not covered". The usual rule is half a month's salary for each completed year, but your employer's scheme decides.

Sources

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