How to use the Gratuity Calculator
- Enter your last drawn monthly basic plus dearness allowance.
- Enter years and extra months of service, and whether your employer is covered by the Act.
- Read the estimated gratuity.
How it works
Gratuity = Last drawn monthly (basic + DA) × 15 × years of service ÷ 26 for employers covered by the Act (÷ 30 otherwise). Service of 6 months or more in the final year is counted as a full year.
Worked example
Monthly basic + DA of 50,000 and 8 years 4 months of service (counted as 8 years): 50,000 × 15 × 8 ÷ 26 = 2,30,769.
Limits and good to know
This is an estimate. Eligibility, the statutory ceiling and tax treatment depend on current law and your employer’s policy, so confirm them before relying on the number.
Frequently asked questions
Generally 5 years of continuous service, with exceptions such as death or disability.
Yes. It is free with no sign-up.
No. Everything runs in your browser and nothing you enter is sent to a server.
Estimate for information only, not tax or legal advice.