Gratuity Calculator
Estimate gratuity using your last drawn monthly salary and length of service. See the formula, service period used and estimated amount instantly.
Gratuity details
Enter your salary and length of service.
Estimated Gratuity
₹1,44,231
This is an indicative estimate based on the salary and service period entered. Actual gratuity eligibility and payable amount may depend on applicable law, company policy and employment circumstances.
How is gratuity calculated?
A commonly applied gratuity calculation for a monthly-rated employee uses fifteen days of wages for each eligible year of service.
Estimated gratuity formula
Last Drawn Monthly Salary
× 15
÷ 26
× Eligible Years of Service
= Estimated Gratuity
The calculator also considers additional months entered with the service period. For this estimate, a period beyond a completed year is rounded up when it exceeds six months.
Gratuity calculation example
Assume an employee has a last drawn monthly salary of ₹50,000 and five completed years of service.
The estimate is calculated as ₹50,000 × 15 ÷ 26 × 5, which gives approximately ₹1,44,231.
What can affect gratuity?
Frequently asked questions
What is gratuity?
Gratuity is a benefit that may become payable by an employer when an eligible employee's employment ends under applicable gratuity rules. Eligibility and the final payable amount depend on the employee's circumstances and the law that applies.
What salary is used for this gratuity estimate?
This calculator asks for the last drawn monthly basic salary used for the estimate. Actual gratuity calculations should follow the wage definition and rules applicable to the employee.
What formula does this calculator use?
The calculator uses the commonly applied estimate: last drawn monthly salary × 15 ÷ 26 × eligible years of service.
How are additional months of service handled?
For this estimate, a service period beyond a completed year is rounded up when the additional period exceeds six months. Shorter periods are not rounded up.
Is five years of service always required?
Not in every situation. Eligibility rules can differ depending on circumstances such as death, disablement, fixed-term employment or other applicable provisions. This calculator should not be used as a legal eligibility determination.
Is the calculator result the final amount payable?
No. The result is an estimate only. Actual gratuity can depend on applicable law, wage definition, service history, statutory limits, employment terms and employer policy.
Managing employee benefits and payroll?
Manage HR workflows from one platform
HRCorePro helps growing companies manage employee records, payroll, attendance, leave, documents and everyday HR operations from one connected system.
More Free Tools
Explore more HR calculators
CTC to In-Hand Salary Calculator
Estimate your monthly take-home salary from annual CTC.
Use calculatorAttendance Percentage Calculator
Calculate attendance percentage from present and working days.
Use calculatorNotice Period Calculator
Estimate your last working date from resignation date and notice period.
Coming Soon