Gratuity is a lump-sum employment benefit paid when specified service and exit conditions are met. The applicable formula and eligibility depend on the governing law, employment category and employer policy.

How does the Act-covered formula work?

This estimate uses 15 divided by 26 multiplied by last drawn basic plus eligible DA and counted years of service. Six or more months beyond a completed year are rounded up in this model.

Is five years of service always required?

Five years is a common eligibility condition, but exceptions and the reason for separation can matter. This calculator cannot decide eligibility.

Why can my employer's number differ?

The salary definition, coverage, service dates, rounding, ceiling, policy terms and applicable law may differ. Use this result as a transparent estimate and verify the employer calculation.

Gratuity has its own exemption treatment, which depends on your employment category and the amounts involved. This calculator shows a pre-tax estimate and does not compute tax.

Does notice period count towards service?

It depends on your employer's policy and whether the period is treated as service. Ask HR how your last working day and notice period are recorded, since it can change the counted years.

Why does 10.7 years become 11?

Under the Act-covered option, six or more months beyond a completed year are rounded up. The other-scheme option uses completed years only, so the same input can produce a different result.

Is gratuity payable if I resign?

Resignation is one of the recognised exits, subject to the applicable service condition and your employer's framework. Eligibility is a legal question this calculator does not answer.

Gratuity Calculator

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

Under 30 seconds

Updated 1 Sept 2026

12,450people used this

Estimated gratuity

₹2,88,462

Payment of Gratuity Act framework

Monthly salary used

₹50,000

Basic plus entered DA.

Counted service

10 years

Partial year rule applied.

Service check

5+ years

A common eligibility assumption; exceptions can apply.

A gratuity calculator applies a stated formula to last drawn basic plus eligible DA and years of service. For Act-covered employees, this page uses 15/26 × salary × counted years and rounds six or more months up; it also shows the statutory ceiling assumption. It does not decide legal 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 Act-covered and non-covered scheme formulas differ, both are available and clearly labelled.

It cannot decide eligibility. Coverage under the Act, 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
Choose the framework
The Act-covered and other-scheme options have different rounding and formula assumptions.
2
Add basic and eligible DA
The monthly salary base is the last drawn basic plus the DA you enter.
3
Apply service rounding
The Act-covered 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 only if your employment framework includes it in the gratuity salary base. Leave it at zero if your structure has no DA.
Years of service: Total completed service with this employer, as a decimal for part years, such as 10.7. The Act-covered option rounds six or more extra months up to a full year.
Employment framework: Act-covered applies 15/26 and the statutory ceiling assumption. Other scheme applies 15/30 with no ceiling. Confirm which applies to you before relying on the figure.

Gratuity Calculator formula

The exact maths behind every number on this page.

Act-covered: gratuity = (15 ÷ 26) × (basic + eligible 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 Act-covered calculations

For the other-scheme option, this tool uses 15/30 × monthly salary × completed years and does not apply the statutory ceiling. 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 Act-covered option.

1Monthly salary₹50,000
2Counted service11 years
3Formula15 ÷ 26 × ₹50,000 × 11
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 Act-covered option uses 15/26 × last drawn basic plus eligible DA × counted years and applies a ₹20,00,000 ceiling assumption.
The other-scheme option uses 15/30 × monthly salary × completed years, with no statutory ceiling modelled.
Five years of continuous service is shown as a common eligibility assumption; statutory exceptions and employment circumstances can change the outcome.
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.

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.

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