Gratuity Calculator

Calculate your Gratuity payout in India online under the Payment of Gratuity Act. Enter basic salary, DA, and years of service to view estimated payouts instantly.

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How to Use Gratuity Calculator

  1. Enter your Last Drawn Monthly Basic Salary + Dearness Allowance (DA).
  2. Enter your total years of continuous service with the employer.
  3. View the estimated Gratuity payment amount instantly.

The Payment of Gratuity Act, 1972

Gratuity is a statutory retirement benefit paid to employees in India. It applies to all factories, mines, oilfields, plantations, ports, railways, shops, and establishments that employ 10 or more people on any day of the preceding 12 months. Once an establishment comes under the purview of this Act, it remains covered even if the employee strength falls below 10.

Gratuity Calculation Formula

The gratuity calculation is standardized as follows: **Gratuity = ( 15 × Last Drawn Salary × Years of Service ) / 26** Where: - **Last Drawn Salary**: Basic Salary + Dearness Allowance (DA) - **Years of Service**: Total years of continuous employment. A fraction of service exceeding 6 months is rounded up to a full year (e.g. 5 years and 7 months is counted as 6 years).

Frequently Asked Questions

What is Gratuity?
Gratuity is a financial perk given by an employer to an employee in appreciation for services rendered during their tenure, regulated under the Payment of Gratuity Act, 1972.
What is the eligibility for receiving Gratuity?
Under the Payment of Gratuity Act, an employee is eligible to receive gratuity only after completing a minimum of 5 years of continuous service with the same employer.
What is the mathematical formula for gratuity?
The gratuity amount is calculated using the formula: Gratuity = (15 × Last Drawn Salary × Years of Service) / 26. Here, "Last Drawn Salary" includes Basic Salary and Dearness Allowance (DA).