Gratuity calculator
Enter the last drawn basic and DA and the length of service to see the gratuity due, whether the employee is eligible, and what to set aside each month.
What it does
- Gratuity = last drawn monthly wages × 15 ÷ 26 × completed years of service
- Wages are basic pay plus dearness allowance; a part-year over six months counts as a full year
- Eligible after five years of continuous service, one year for fixed-term staff, and at any point on death or disablement
- Capped at ₹20 lakh; payable within 30 days of falling due
Frequently asked questions
What is the formula for gratuity?
Gratuity = last drawn monthly wages × 15 ÷ 26 × completed years of service. Wages means basic pay plus dearness allowance. A part of a year longer than six months counts as a full year.
Who is eligible for gratuity?
An employee with at least five years of continuous service, when they resign, retire or are terminated. A fixed-term employee is eligible after one year. If an employee dies or is disabled, gratuity is payable whatever the length of service.
What is the maximum gratuity?
₹20 lakh. An employer can pay more under its own policy, but the statutory amount stops at ₹20 lakh.