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Gratuity Calculator

Estimate gratuity using your last drawn basic salary, dearness allowance, service period and employment framework.

Under 30 seconds

Updated 1 Sept 2026

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₹
₹10,000₹10,00,000
₹
₹0₹5,00,000
years
050 years
Employment framework

Results dashboard

Estimated gratuity

₹2,88,462

Statutory estimate (Code on Social Security, 2020)

Monthly salary used

₹50,000

Basic + DA — a simplified stand-in for legal wages.

Counted service

10 years

Partial year rule applied.

Service check

5+ years

General condition; exceptions include death, disablement and 1 year for eligible fixed-term employees.

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Estimate only. The statutory figure uses basic + DA as a simplified wage base and does not apply the Labour Codes' wage definition or add-back rule, so your actual statutory gratuity may differ. Verify eligibility, wages and limits with your employer.

A gratuity calculator applies a stated formula to a monthly salary base and years of service. Statutory gratuity is now governed by the Code on Social Security, 2020 (in force from 21 November 2025). This page's statutory estimate uses 15/26 × basic plus DA × counted years, rounds six or more months up and applies a configured ₹20,00,000 limit. Basic plus DA is a simplification of the legal wage definition, so the result is an estimate; it does not decide eligibility or entitlement.

Visual breakdown

A visual view of your calculation.

Interactive charts arrive here soon.

Smart Insights

Generated from the numbers you entered — no guesswork.

  • The selected formula estimates ₹2,88,462 — about 5.8 months of the salary used.
  • Confirm the counted-service rule with your employer and the applicable framework before relying on this estimate.
  • This result is an estimate and does not establish a guaranteed legal entitlement.

What is the Gratuity Calculator?

What the tool does, who it is for and what it cannot tell you.

The gratuity calculator estimates the lump sum an employer may pay for long service, using the last drawn monthly basic salary, eligible dearness allowance and the years of service you enter. It shows the salary base it used, the service it counted after rounding, and the resulting figure — so the number is auditable rather than a black box.

It is built for employees who want to sanity-check an exit settlement, plan around an expected payout, or understand what a few more months of service would add. Because the statutory estimate and an illustrative employer-scheme formula differ, both are available and clearly labelled.

It cannot decide eligibility. Statutory gratuity is governed by the Code on Social Security, 2020, which took effect on 21 November 2025 and consolidates the Payment of Gratuity Act, 1972. The calculator uses basic plus DA as a simplified wage base and does not apply the Labour Codes' wage add-back rule. Coverage, continuity of service, the reason employment ends, forfeiture provisions and tax treatment all sit outside the formula. Treat the output as a planning estimate and confirm entitlement with HR or a qualified professional.

How does the Gratuity Calculator work?

Each step the calculator runs, in plain language.

  1. 1

    Choose the framework

    The statutory and employer-scheme options have different rounding and formula assumptions.

  2. 2

    Add basic and eligible DA

    The monthly salary base is the last drawn basic plus the DA you enter.

  3. 3

    Apply service rounding

    The statutory option rounds six or more months after a complete year up; the other option uses completed years.

What to enter in each field

The exact figure each input expects, so the result means what you think it means.

Last drawn monthly basic salary
The basic pay component of your final month's salary — not gross pay, not cost to company, and not including bonuses or reimbursements.
Monthly dearness allowance
Enter DA if it is part of your pay; leave it at zero otherwise. Legal wages may also include added-back allowances, which this tool does not model.
Years of service
Total completed service with this employer, as a decimal for part years, such as 10.7. The statutory option rounds six or more extra months up to a full year.
Employment framework
Statutory estimate applies 15/26 and the configured ₹20,00,000 limit. Employer scheme (illustrative) applies 15/30 with no limit. Confirm which applies to you before relying on the figure.

Gratuity Calculator formula

The exact maths behind every number on this page.

Statutory estimate: gratuity = (15 ÷ 26) × monthly wages (entered as basic + DA) × counted years

15/26
15 days' salary for each counted year under the selected framework
counted years
Completed years, with 6+ months rounded up for the statutory estimate

Legal wages under the Labour Codes can exceed basic + DA (excluded allowances above 50% of pay are added back); this tool does not model that. For the employer-scheme illustration, it uses 15/30 × monthly salary × completed years with no limit. Confirm the formula applicable to your employment.

Gratuity Calculator calculation example

₹50,000 monthly basic salary, no DA and 10.7 years of service under the statutory option, assuming basic pay equals the legal wage base.

  1. 1Monthly salary₹50,000
  2. 2Counted service11 years
  3. 3Formula15 ÷ 26 × ₹50,000 × 11
  4. 4Estimate₹3,17,308 before any employer-specific adjustment

The displayed estimate is subject to eligibility, the applicable salary definition and current legal or employer rules.

Important assumptions

What this calculation includes, and what it leaves out.

  • The statutory option uses 15/26 × last drawn basic plus DA × counted years and applies a configured ₹20,00,000 limit. Basic plus DA is a simplified stand-in for the legal wage definition.
  • The employer-scheme option is illustrative: 15/30 × monthly salary × completed years, with no limit modelled.
  • Five years of continuous service is shown as the general condition; exceptions include death or disablement, and eligible fixed-term employees qualify after one year under their contract.
  • This calculator does not determine coverage, continuity, forfeiture, tax treatment or legal entitlement. Confirm with HR or a qualified professional.

Financial tips

Practical guidance to act on your result.

  • Check your appointment letter and HR policy for the employment framework used.
  • Use last drawn eligible salary, not necessarily gross salary or CTC.
  • Keep service dates and breaks accurate; eligibility can depend on continuity and the reason employment ends.
  • Treat the figure as planning information, not proof of entitlement.

Frequently asked questions

Short, direct answers to the questions we hear most.

Read the thinking behind it

Guides that explain how to use this calculation in a real decision.

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Disclaimer

CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.