Gratuity Calculator India
Estimate your eligible gratuity payout using last drawn salary and years of service under the Payment of Gratuity Act.
Eligible Gratuity
₹1,84,615
Gratuity Eligibility
Eligible
Last Drawn Salary
₹40,000
Years of Service
8 years
Gratuity Calculation Summary
What is Gratuity?
Gratuity is a statutory retirement benefit paid by employers to employees who have completed a minimum period of continuous service, typically 5 years. It is governed by the Payment of Gratuity Act, 1972 and applies to enterprises with 10 or more employees.
This calculator helps you estimate the gratuity amount based on your last drawn salary and years of service. It follows the official formula used in India to calculate the gratuity payout for eligible employees.
Use this tool alongside our Salary Calculator to determine your exact last drawn salary and our Income Tax Calculator to understand related tax implications.
Gratuity Rules and Eligibility
Official Gratuity Formula
The statutory gratuity amount is calculated as:
Last Drawn Salary × 15 × Years of Service / 26
Last drawn salary usually includes basic pay plus dearness allowance (DA). The formula uses 15 days salary for each year of service divided by 26 working days in a month.
Key Eligibility Criteria
- Minimum 5 years of continuous service with the same employer.
- Applicable at retirement, resignation, death, or permanent disability.
- Not typically payable for service under 5 years, except in special cases.
- Employers may pay higher gratuity if it is part of company policy.
How the Gratuity Calculator Works
Enter your last drawn salary and total years of service. The calculator computes the statutory gratuity amount using the official Payment of Gratuity Act formula. It also checks whether you generally meet the minimum eligibility period.
This estimate helps you plan your retirement finances and understand the lump sum benefit you may receive when leaving an employer after long service.
Tip
If your salary includes dearness allowance (DA), use the combined basic + DA value as your last drawn salary for a more accurate gratuity estimate.
Frequently Asked Questions
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