Gratuity Calculator

What is the Gratuity Calculator?

Gratuity is governed by employment and statutory rules, so the mathematical result alone does not establish eligibility. Verify the applicable law and your employer's records.

How the calculation works

The simplified formula used here is gratuity = (last drawn basic salary + DA) × 15 ÷ 26 × completed years of service. Actual eligibility, rounding and statutory limits can affect the payable amount.

Worked example

If basic salary is ₹50,000, DA is ₹5,000 and completed service is 10 years, the illustrative calculation uses ₹55,000 as the wage base and multiplies it by 15/26 and 10 years.

How to use this calculator

1. Enter the values that apply to your situation.
2. Check the rate, period and other assumptions before calculating.
3. Click Calculate and review each part of the result, not only the headline number.
4. Change one input at a time if you want to compare different scenarios.

How to interpret the result

Gratuity is governed by employment and statutory rules, so the mathematical result alone does not establish eligibility. Verify the applicable law and your employer's records. Use the result as a planning estimate and compare it with the terms, rates or rules that actually apply to you.

Practical tips

• Use the salary components that the applicable rules recognize.
• Use completed years according to the applicable eligibility rules.
• Check the current statutory ceiling and treatment.
• Ask the employer for an official settlement calculation when leaving employment.

Important limitations

• Eligibility is not determined by this tool.
• Statutory limits and special cases are not comprehensively modeled.
• Actual employer calculations may include rounding and rule-specific treatment.

Frequently Asked Questions

Last reviewed: August 2026. Rate-sensitive rules and institutional terms can change; verify current information before making an important decision.