Gratuity Calculator
India
Gratuity calculator
Estimate statutory gratuity payable based on last drawn salary and completed years of service.
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
Estimates the lump-sum gratuity amount using the standard formula under Indian labour rules, based on last drawn salary and completed years of service.
Limitations & disclaimer
Provides estimates only. Actual entitlement may vary depending on employer policy. Consult your HR department or a legal advisor for final settlement amounts.
FAQs
What formula is used?
Gratuity = (Last drawn salary x 15 x Years of service) / 26, the standard formula under the Payment of Gratuity Act.
Is there a minimum service requirement?
Generally, 5 years of continuous service is required. This calculator does not enforce that rule.
Is gratuity taxable?
Under current rules, gratuity up to a statutory limit is exempt. Amounts above are taxable. Consult a tax advisor.
Does this include employer caps?
The calculator uses the standard formula. Employer-specific caps or enhanced schemes are not modelled.