Free tool
Gratuity calculator
Gratuity is a thank-you payment from your employer when you leave after years of service. Enter your last monthly basic pay plus dearness allowance and how long you have worked to see roughly what it comes to.
What you type stays in your browser. It isn't sent to us or saved. This is an estimate, not legal advice: your employer's HR and the Act decide the exact amount.
Enter your pay and years of service to see the gratuity.
How this is worked out
- The formula: last monthly basic pay plus dearness allowance, times 15, divided by 26, times the years of service. The 26 is the working days in a month. If your employer is not covered by the Act, 30 is used instead of 26 and only completed years count.
- Part-years: for a covered employer, a part-year of more than six months counts as a full year; six months or less does not.
- Five years: gratuity is normally payable after five years of continuous service. Exceptions include death or disability, and an employer's own policy can pay sooner.
- The cap: the Act requires at most ₹20,00,000. An employer may pay more.
- Not included: tax on the amount, which depends on your situation, and the rule changes that labour-law reforms may bring. Check with your HR before you rely on the number.
Weighing an offer? See what a CTC leaves in hand with the CTC to in-hand calculator.