Gratuity calculator
Enter the last drawn Basic + DA and the dates of service to see whether gratuity is due and how much.
Gratuity payable
₹1,38,462
- Service
- 7 years, 7 months
- Years counted
- 8
- Minimum service
- 5 years
- Formula (15 ÷ 26 × wage × years)
- ₹1,38,462
- Ceiling
- ₹20,00,000
How this is worked out
- Payment of Gratuity Act formula: 15 days' wages for each completed year, with a month counted as 26 days.
- At least 5 years of continuous service. A final part-year of 6 months or more counts as a full year.
- Payable amount capped at ₹20,00,000.
- Does not cover death or disablement, where the 5-year rule does not apply, or employers outside the Act.
- The Code on Social Security, 2020 changes some gratuity rules, for example for fixed-term employees. Check how it applies to your case.
An estimate for planning, not tax or legal advice.
Common questions
Does 4 years and 7 months count as 5 years?
This calculator rounds a final part-year of 6 months or more up to a full year, which is the reading most courts apply. Some employers use a stricter interpretation; check your policy.
Which wage is used?
The last drawn Basic plus Dearness Allowance per month. Other allowances and bonuses are not included.
How does PeopleOS handle gratuity?
PeopleOS works out continuous service from each employee's employment history and shows gratuity accrual and settlement amounts using your workspace's gratuity policy.