Gratuity calculator
What you are owed at the end of a long stint, worked out as you type.
Basic pay plus dearness allowance, or the “wages” figure your employer uses. The new labour codes may count more than basic pay.
Rules this uses (checked 27 October 2026)
- Gratuity = last drawn wages × 15 × years of service ÷ 26.
- A part-year of more than six months counts as a full year. Exactly six months does not.
- You need 5 years of service (1 year on a fixed-term contract). On death or disability there is no minimum.
- The Act’s maximum is ₹20,00,000. An employer may pay more.
- “Wages” is basic pay plus dearness allowance. The new labour codes, in force from 21 November 2025, widen what counts, so use the figure your employer uses.
- Employers not covered by the Act, and income tax, are not worked out here.
These come from public sources and rules can change. This is an estimate, not legal or tax advice. Nothing you type leaves your browser.
Saved you some kaam? Pass it on.
Know someone still doing this by hand? Send them Gratuity Calculator. It's free and takes seconds.
How it works
- 1
Enter your dates
The day you joined and your last working day. It can be a day in the future if you are planning ahead.
- 2
Enter your wages
Your last drawn monthly wages: basic pay plus dearness allowance, or the figure your employer uses.
- 3
Read the result
Whether you are eligible, the years that count, the amount and how it was worked out.
Questions
How is gratuity calculated?
Last drawn wages × 15 × years of service ÷ 26. A part-year of more than six months counts as a full year. For example, wages of ₹50,000 and 10 years of service give about ₹2,88,462.
Who gets gratuity?
Under the Payment of Gratuity Act, an employee who has completed five years with an employer when they leave, whether they resign, retire or are let go. On death or disability there is no five-year minimum. Under the new labour codes, in force from 21 November 2025, employees on a fixed-term contract can be eligible after one year. Whether the law applies to your employer is a separate question, so ask your HR.
What counts as “wages”?
Under the Act, basic pay plus dearness allowance. The new labour codes widen the meaning of wages, so that allowances can’t make up more than half of total pay, and sources describe the exact test differently. Use the wages figure from your employer or your payslip.
Why 26 and not 30?
The Act treats a month as 26 working days, leaving out Sundays. Some employers that are not covered by the Act use 30. This calculator does not work that out.
Is gratuity taxable?
For employees covered by the Act, gratuity up to ₹20 lakh is generally exempt from income tax, with conditions, and an amount above that can be taxable. Rules are different for others. This calculator does not work out tax, so ask your CA.
I have worked 4 years and 8 months. Do I get it?
The Act asks for five years of continuous service. Some employers and courts have treated four years and eight months as enough, but it is not a guarantee. Ask your HR. The calculator shows “not eligible yet” and the date you reach five years.
Can my employer pay more than the maximum?
Yes. ₹20 lakh is the maximum under the Act. An employer can choose to pay more.
Is my information sent anywhere?
No. It is worked out in your browser and nothing is sent or saved.