Gratuity Calculator
Estimate statutory gratuity payable to employees in India based on last drawn salary and years of service using the commonly applied gratuity formula.
Gratuity Calculator (India)
Estimated gratuity
₹86,538
How calculations work
All calculations run locally in your browser. We do not call any external APIs or transmit your inputs.
Gratuity calculation steps
- Last drawn monthly salary: the monthly salary you input — typically basic + dearness allowance where applicable.
- Formula: statutory gratuity is commonly estimated as (Last drawn monthly salary × 15/26) × Years of service. The factor 15/26 represents 15 days' wages for each completed year where the month is considered as 26 working days for the purpose of calculation.
- Years of service: the number of completed years for which gratuity is payable. Fractional years are not accounted for in this simplified estimator.
- Rounding: results are rounded to whole rupees for display.
Note: This is a simplified estimator intended for informational purposes. Actual gratuity calculations may vary depending on employer rules, applicable state laws, or specific employment contracts. For an exact amount, consult your payroll department or a legal/tax professional.
What this calculator does
This tool estimates the lump-sum gratuity amount an employee may be eligible for under Indian labour rules. It uses the usual formula based on last drawn salary and completed years of service to provide a quick estimate.
The calculation is intended to be a planning aid for employees and payroll staff to get a sense of likely benefits at retirement or separation from service.
Who should use this calculator?
Employees planning for retirement or resignation, HR professionals, and payroll staff can use this calculator to get an indicative gratuity figure when preparing settlement statements or calculating benefits.
It is also useful for financial planning—knowing an approximate lump-sum helps with retirement income planning, loan payoff timing, or personal financial projections.
How this calculator works
The calculator applies the statutory gratuity formula which typically multiplies the last drawn monthly salary by a factor of years of service and a specified multiplier (subject to statutory caps). It simplifies rules for clarity and produces an estimated payable amount.
Some employers and contracts vary in how gratuity is calculated (for example, caps on monthly salary or special multipliers). The calculator uses the common approach but may not represent every contractual or statutory exception.
How to interpret your result
The result is an indicative amount payable under common gratuity calculations. Actual entitlement may vary depending on employer policy, applicable labour laws, and specific employment contracts. Use this figure for planning, not as a legally binding calculation.
If you need an official settlement amount, request a formal calculation from HR or seek legal advice for ambiguous employment arrangements.
Example
For example, an employee with a last drawn salary of ₹50,000 and 10 years of service may see an indicative gratuity computed by the formula used here; the exact result will depend on the multiplier and statutory caps applied. This page's example helps illustrate how tenure and salary changes affect the lump-sum estimate.
Limitations & disclaimer
This calculator provides estimates only and may not reflect statutory exceptions, caps, or special employer schemes. For final settlement amounts consult your HR department, employment contract, or a legal advisor.
Use this page for planning and education; if you suspect special rules or capped salary definitions apply, confirm the precise calculation method before relying on any single number for legal or financial decisions.