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Gratuity Calculator

Estimate gratuity under the Payment of Gratuity Act formula — caps and eligibility rules may apply.

Minimum 5 years of continuous service is typically required for gratuity under the Act.

Results (estimate)

Gratuity estimate: ₹0

Formula: (Last drawn salary × 15 × years of service) ÷ 26

Statutory maximum limits (e.g. ₹20 lakh cap) and employer-specific rules are not applied in this estimate. Confirm with HR or legal counsel.

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What is gratuity?

Gratuity is a lump-sum benefit paid by an employer when an employee leaves after qualifying service, governed by the Payment of Gratuity Act, 1972 for covered establishments.

Formula

Gratuity = (Last drawn salary × 15 × Years of service) ÷ 26

Last drawn salary = Basic + Dearness Allowance (DA)

Example

Salary ₹50,000, 10 years → (50,000 × 15 × 10) ÷ 26 ≈ ₹2,88,462 (before any statutory cap).

FAQ

Is there a maximum gratuity amount?

Yes — the Act specifies a ceiling (currently ₹20 lakh for many cases). This calculator does not cap the result.

Do partial years count?

Service beyond 6 months in a year may be treated as a full year under rules; enter years as your employer would count them.