Gratuity Calculator

Under the Payment of Gratuity Act, eligible employees receive gratuity after completing at least five years of continuous service. The amount is calculated as (Last drawn salary × 15 ÷ 26) × Years of service, where last drawn salary includes basic pay and dearness allowance.

For employees covered under the Act, the maximum gratuity payable is capped at ₹20 lakh. Employers may have separate policies for employees not covered by the Act, but this calculator uses the standard statutory formula.

Partial years are typically counted based on whether the employee has completed six months in the final year of service. This calculator rounds completed years as per common payroll practice—confirm with your HR department for exact tenure treatment.