About the Gratuity Calculator (India)
This Gratuity Calculator helps you estimate how much gratuity you may receive from your employer when you leave the organisation or retire. It uses the standard formula followed in India for employees covered under the Payment of Gratuity Act, 1972, as well as a common formula for cases not covered under the Act.
Gratuity Formula (Under Payment of Gratuity Act)
For employees covered under the Act, gratuity is generally calculated as:
- Formula: Gratuity = (15 × Last drawn monthly basic salary × Number of years of service) / 26
- Salary: Usually basic + DA (and certain fixed components, if applicable).
- Years of service: Service more than 6 months is rounded up to the next full year.
Gratuity Formula (Not Covered by the Act)
For employees not covered under the Payment of Gratuity Act, a commonly used formula is:
- Formula: Gratuity = (15 × Last drawn monthly basic salary × Number of years of service) / 30
- The exact rules, rounding, and eligibility may vary based on company policy.
How to Use This Calculator
- Enter your last drawn monthly basic salary (plus DA) as per your salary slip.
- Enter your total years and extra months of continuous service in the same organisation.
- Select whether you are covered under the Payment of Gratuity Act or not.
- Optionally, enter a maximum gratuity limit if your employer or current rules specify a cap.
- Click “Calculate Gratuity” to see your estimated gratuity, before and after the limit.
This tool is for general guidance and educational purposes only. It does not account for all possible components, special company policies, or future legal changes. Please confirm the exact amount with your HR/Accounts team or a qualified financial/tax advisor before making any financial decisions.