Gratuity Calculator – Calculate Gratuity Amount India
Calculate your gratuity entitlement based on your last drawn salary and years of service. Uses the official Payment of Gratuity Act 1972 formula.
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About Gratuity Calculator
Calculate your gratuity entitlement based on your last drawn salary and years of service. Uses the official Payment of Gratuity Act 1972 formula.
Frequently Asked Questions
What is the gratuity formula?
Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26. "Last Drawn Salary" = Basic Salary + Dearness Allowance.
Who is eligible for gratuity?
An employee who has completed at least 5 years of continuous service with the same employer is eligible for gratuity.
What is the maximum gratuity amount?
As per the Payment of Gratuity (Amendment) Act 2018, the maximum tax-free gratuity limit is ₹20 lakhs.
What does "15/26" mean in the formula?
15 represents 15 days of salary per year of service. 26 represents the average working days in a month (excluding Sundays).