Employment calculator

Gratuity Calculator India

Estimate gratuity using a common formula and clearly stated service assumptions.

Estimate only; not legal, tax or employment advice.

Estimate gratuity using a common method

This calculator applies last drawn monthly wages × 15 ÷ 26 × formula years. Enter wages as determined for gratuity purposes; basic pay and DA alone may not be the complete current statutory wage basis.

How to use it

  1. Enter your last drawn monthly wages as determined for gratuity purposes.
  2. Enter completed years and additional months.
  3. Select Estimate gratuity.

Method

Estimated gratuity = (entered monthly wages × 15 ÷ 26) × formula years

Additional service of more than six months rounds up in this simplified formula. Five years of continuous service is the general eligibility rule, subject to statutory exceptions, including death, disablement and qualifying fixed-term employment. The calculation does not determine entitlement.

Worked example

₹50,000 entered monthly wages and 10 years 7 months gives 11 formula years and an estimate of approximately ₹3,17,308.

Assumptions and limitations

Estimate only—not legal advice. This simplified estimate does not determine coverage, continuous service, the statutory wage definition, fixed-term employment, death or disability exceptions, any notified cap, tax, employer terms or entitlement. Not all contractor-engaged workers qualify as fixed-term employees. Confirm the applicable wage amount and eligibility with HR or a qualified professional.

Frequently asked questions

Which wage amount does this estimate use?

It uses the entered last drawn monthly wages determined for gratuity purposes; basic pay plus DA alone may be incomplete.

How are additional months treated?

Service beyond six additional months rounds up to another formula year.

Is the result legal advice?

No. Eligibility and amount depend on applicable law, employment facts and current limits.

Official references and review

Reviewed 28 September 2026 against the Ministry of Labour and Employment’s additional FAQs on Labour Codes and the Code on Social Security, 2020. These references explain the statutory wage basis and gratuity provisions; the calculator is only a simplified illustration.

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