Gratuity Calculator

Gratuity is a lump sum your employer pays when you leave after long enough service, or on retirement, death or disablement. This calculator works it out from your last drawn basic pay plus dearness allowance and your years of service, using the formula in the Code on Social Security, 2020, which replaced the Payment of Gratuity Act from 21 November 2025. It also tells you whether you have served long enough for gratuity to be due, and where the ₹20 lakh ceiling applies.

1. Enter your last drawn basic pay plus dearness allowance for one month. This is not your total salary; your payslip shows it.
2. Enter your years and months of continuous service with this employer.
3. Choose permanent or fixed-term employment, because the qualifying period differs.
4. Read the gratuity, the years the formula counted and whether it is due yet.

• It uses the formula for employers covered by the Code, broadly those with ten or more employees. A smaller employer may pay gratuity under its own terms.
• Under the Code, basic pay and DA should together be at least half of your total pay. If yours is lower, the wages used for gratuity may be higher than your payslip’s basic pay.
• Seasonal establishments use 7 days’ wages a year instead of 15, which this calculator does not apply.
• Tax is summarised as the ₹20 lakh lifetime limit for non-government employees. Government employees’ gratuity is fully exempt.
• The calculation runs in your browser and nothing is sent anywhere. Your pay and service appear only in the page address, so the link can be saved or shared.

The formula pays 15 days’ wages for each year of service and treats a month as 26 working days, leaving out the four weekly holidays. So one year earns 15 ÷ 26 of a month’s basic pay.

Five years of continuous service for a permanent employee. Under the Code, a fixed-term employee is entitled after one year. On death or disablement it is paid whatever the length of service.

Yes. A final part of a year longer than six months counts as a full year, so 5 years 7 months is counted as 6. Exactly six months does not round up.

The law requires an employer to pay at most ₹20 lakh, and ₹20 lakh is also the lifetime tax-free limit for non-government employees. An employer can pay more, but the extra is taxable.