How gratuity is calculated
Gratuity is a lump-sum benefit your employer pays for long service, funded entirely by them — nothing is deducted from your salary for it. The formula depends on whether your employer is "covered" under the Payment of Gratuity Act, 1972.
Most companies — 10+ employees
Covered under the Act
- The Act assumes 26 working days a month, and pays you 15 days' wage for every year served.
- Wage means Basic + DA only — not your full CTC.
- A final part-year over 6 months rounds up to a full year (5y 7m becomes 6 years).
Smaller establishments, under 10 staff
Not covered under the Act
- Uses a 30-day month instead of 26, based on your average wage over the last 10 months.
- Only fully completed years count — no rounding up.
- Paid voluntarily by employers not legally required to.
What the calculator handles for you
Accurate to the rupee
Uses the exact statutory formula and rounding rules — not a rough estimate.
Covers edge cases
Resignation, death, disablement, fixed-term contracts, and government roles all handled correctly.
100% private
Runs entirely in your browser. Nothing you enter is stored or sent anywhere.
Who this is for
Checking your final settlement
Verify your employer's exit payout is correct before you sign off.
HR and payroll teams
Quickly cross-check gratuity liability with the same statutory formula.
Planning a job change
See whether staying a few more months crosses the 5-year mark or rounds up a year.