Gratuity Calculator India

Easily calculate your gratuity entitlement as per Indian labor laws updated for 2025. This Gratuity Calculator provides an instant estimate based on your last drawn salary and total years of service.

Use this tool to understand your gratuity benefits quickly, helping you plan your finances better and ensuring compliance with the latest statutory norms.

• Applicable under the Payment of Gratuity Act, 1972
• Instant, real-time calculation without refresh or button clicks
• Supports employers both covered and not covered under the Gratuity Act
• Clear explanation of the calculation method with formula
• Minimum 5 years of continuous service required for eligibility

Last Drawn Salary (Basic + DA):

Years of Service:

Employer Coverage: Covered under Gratuity Act Not covered under Gratuity Act

How is Gratuity Calculated?

Under the Payment of Gratuity Act, gratuity is calculated with the formula:

Gratuity = (15 × Last Drawn Salary × Years of Service) ÷ 26

For employers not covered under the Act, the divisor is 30 instead of 26.

• The last drawn salary includes basic salary plus dearness allowance (DA).
• Gratuity is payable after at least 5 years of continuous service.
• The maximum gratuity amount payable is ₹20 lakhs as per the latest amendments.
• For each completed year of service or part thereof in excess of six months, the employee is entitled to gratuity.