Gratuity Calculator
Estimate your gratuity payout under the Indian Payment of Gratuity Act.
Gratuity is a lump-sum reward for long service, paid by an employer when an employee leaves after five or more years. In India it's governed by the Payment of Gratuity Act, whose formula is specific: 15 days of wages for every completed year, based on your last drawn salary (basic pay plus dearness allowance) and a 26-day month.
Enter your last drawn monthly salary and total years of service, and this calculator applies the statutory formula — (last salary × 15 × years) ÷ 26 — to estimate your gratuity. It's useful for planning a resignation, verifying a settlement, or simply understanding what you've accrued.
How to use Gratuity Calculator
- 1
Enter your last drawn salary
Basic pay + dearness allowance, per month.
- 2
Enter years of service
Completed years (rounded per the Act's rules).
- 3
Read your estimated gratuity
Calculated with the statutory formula.
Features
- Payment of Gratuity Act formula (15/26)
- Based on last drawn basic + DA
- Instant estimate for planning
Frequently asked questions
Common mistakes to avoid
- Using total CTC instead of basic + DA — gratuity is calculated only on those components.
- Forgetting the five-year eligibility threshold, below which no gratuity is payable (except death/disability).
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