Gratuity Calculator

A Gratuity Calculator is an online tool that helps estimate the gratuity amount payable to an employee based on their last drawn salary and total years of service, as per applicable labour laws.

The calculator provides an illustrative estimate of gratuity entitlement. The results shown are indicative and do not represent the final amount payable, which may vary based on employer policies and statutory provisions.

Actual gratuity payouts depend on eligibility conditions, service continuity, and applicable legal requirements.

The gratuity calculator considers the following inputs:

• Last drawn basic salary
• Dearness allowance, where applicable
• Total completed years of service

Based on these inputs, the calculator estimates:

• The gratuity amount payable under standard statutory assumptions

The calculation assumes eligibility under the applicable gratuity rules and does not account for employer-specific variations or discretionary benefits.

The gratuity calculator can help you:

• Estimate gratuity entitlement at the end of employment
• Understand how salary and tenure impact gratuity amounts
• Support retirement and long-term financial planning
• Compare gratuity outcomes for different service durations

The calculator is intended as a planning and estimation tool and should not be treated as a substitute for official employer calculations.

Gratuity is generally calculated using a standard statutory formula:

Gratuity = (Last drawn salary × 15 × Number of completed years of service) / 26

Where:

• Salary includes basic pay and dearness allowance
• 15 represents days of wages for each completed year
• 26 represents the number of working days in a month

The calculator applies this formula for estimation purposes. Actual gratuity payable may differ based on eligibility, rounding rules, and employer policies.