Gratuity Calculator
Find out your eligible Gratuity amount instantly. Enter your last drawn Basic Salary (+DA) and tenure of service to calculate the lump sum payout you'll receive upon resignation or retirement.
Employment Details
Payout Overview
Calculation Breakdown
Step-by-step logic used to arrive at your final gratuity amount.
Payment of Gratuity Act, 1972
| Component | Value | Description |
|---|
Understanding Gratuity
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for their past services. It is governed by the Payment of Gratuity Act, 1972 in India.
Eligibility Rules
An employee is legally eligible to receive gratuity only after completing 5 continuous years of service with the same employer. It is payable on resignation, retirement, death, or disablement (the 5-year rule does not apply in case of death or disablement).
How is it calculated?
For employees covered under the Act, the formula is: (15 / 26) × Last Drawn Salary × Years of Service.
Rounding Rule: If your tenure includes months, any period above 6 months is rounded up to the next full year. For example, 6 years and 7 months is considered 7 years. 6 years and 5 months is considered 6 years.