Utilzivo

Gratuity Calculator

Estimate your gratuity payout under the Payment of Gratuity Act formula. Gratuity is a lump-sum benefit Indian employers pay when you leave after long service — it rewards loyalty with a tax-advantaged payout. Enter your last drawn monthly salary and years of continuous service to see the amount owed. Gratuity is generally payable only after 5 years of continuous service with the same employer.

How to Use the Gratuity Calculator

  1. Enter your last drawn monthly salary — basic pay plus dearness allowance, as per the Act.
  2. Enter your years of continuous service with the same employer (fractions like 5.5 are accepted).
  3. Press Calculate to see your gratuity amount instantly.
  4. If you have less than 5 years of service, the tool explains the eligibility rule instead of showing a figure.

Practical example

With a last drawn salary of ₹50,000 per month and 5 years of service, gratuity = (50,000 × 15 × 5) ÷ 26 = ₹1,44,231. Stay 10 years at ₹30,000 per month and it becomes (30,000 × 15 × 10) ÷ 26 = ₹1,73,077. Notice how the 15-days-per-year factor makes long service dramatically more valuable — doubling your tenure roughly doubles the payout even at the same salary, which is why gratuity rewards employees who stay.

Key features and benefits

  • Official formula: uses the statutory (monthly salary × 15 × years) ÷ 26 calculation from the Act.
  • Eligibility check: tells you plainly if you have not completed the required 5 years, with the reason.
  • Fractional years: supports values like 7.5 years for mid-year exits.
  • Indian formatting: results shown in ₹ with Indian digit grouping.
  • Private: everything is calculated in your browser.

Limitations

This is the standard formula for employees covered under the Payment of Gratuity Act, 1972. Actual payouts can differ for seasonal establishments (which use a 7-day factor), employer-specific rounding of part-years, or the ₹20 lakh tax-exemption ceiling on gratuity received. Nominee rules and forfeiture conditions for misconduct are also outside this tool’s scope. Confirm the final figure with your HR or payroll department before relying on it.