Gratuity Calculator
Calculate gratuity amount based on your last drawn salary and years of service using the Payment of Gratuity Act formula.
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Gratuity Formula
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26
Applicable for employees who have completed at least 5 years of continuous service.
Frequently Asked Questions
Who is eligible for gratuity?
Employees who have completed at least 5 years of continuous service with an employer are eligible for gratuity under the Payment of Gratuity Act, 1972.
How is gratuity calculated?
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26. The salary includes basic pay and dearness allowance. The formula divides by 26 as it represents working days in a month.
Is there a maximum limit on gratuity?
Yes, the maximum gratuity payable is ₹20 lakh under the Payment of Gratuity Act. Amounts above this may be paid at the employer's discretion.