Calculate the gratuity amount payable to an employee under the Payment of Gratuity Act, based on the last drawn salary and years of continuous service.
How to Use the Gratuity Calculator
Enter your "Last Drawn Monthly Salary (Basic + DA)".
Enter your total "Years of Service", including decimals (e.g. 7.5 for 7 years 6 months).
Click "Calculate Gratuity" to see the years considered and the gratuity amount payable.
Frequently Asked Questions
It uses the standard formula under the Payment of Gratuity Act: Gratuity = (15 × Last Drawn Salary × Years of Service) ÷ 26, where 26 represents the average number of working days in a month.
If the number of completed months beyond a full year is 6 or more (i.e. the decimal part is 0.5 or higher), the year is rounded up to the next full year; otherwise it's rounded down.
For employees covered under the Payment of Gratuity Act, the tax-exempt gratuity amount is currently capped at ₹20,00,000 by statute. This calculator shows the uncapped computed amount so you can see the raw formula result; check current limits and your employer's policy for the actual payable/exempt amount.
Yes, it's completely free and requires no sign-up.