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HR & Salary · Local-first · Beta

Gratuity Calculator

Estimate gratuity after checking the event, service period, employment type and last-drawn wages.

Instant result•No account•Inputs stay in your browser
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Tier D · Runs locally in this browser
Method
Eligibility-first gratuity estimate using 15 days of last-drawn wages per qualifying year and an editable cap.
Gratuity = 15/26 × last-drawn monthly wages × qualifying years, subject to the entered cap.
Sources
1 reviewed reference · 1 official
Open the source register
Effective period
1 April 2025 onward
Last verified
9 August 2026
Review every 90 days
Reviewer status
Named payroll/labour reviewer: external review pending
Privacy
Tax and payroll inputs stay in this browser. They are not sent to analytics, a backend, a URL or a log, and are not saved by default.
Important limitations
  • Seasonal and piece-rated methods, disputes, forfeiture, better contractual terms and cap amendments are excluded or user-confirmed.

Read all limitationsReport an error

Browse HR & Salary · Methodology · Sources

A quick guide

Use the number with context

The answer is only useful when you know what it includes and what it leaves out.

How to use it

  1. Enter labour-policy date from your records or declared policy assumptions.
  2. Choose employment type from your records.
  3. Choose exit or gratuity event from your records.
  4. Enter completed years of service from your records or declared policy assumptions.
  5. Enter additional months of service from your records or declared policy assumptions.
  6. Enter last-drawn monthly wages from your records or declared policy assumptions.
  7. Enter applicable gratuity cap from your records or declared policy assumptions.

Formula

Gratuity = 15/26 × last-drawn monthly wages × qualifying years, subject to the entered cap.

The result is an estimate and does not decide continuous service, wage components or a better contractual benefit.

Make it concrete

Worked example

Five completed years at ₹50,000 last-drawn wages produces ₹1,44,230.77 before the applicable cap.

Boundaries

What this tool does not assume

Limitations

  • Seasonal and piece-rated methods, disputes, forfeiture, better contractual terms and cap amendments are excluded or user-confirmed.

Edge cases

  • Death/disablement can remove the five-year gate; fixed-term expiry uses a one-year and pro-rata path in this release.

Last reviewed 9 August 2026 · Formula version 1.0

Method & sources

How this result is grounded

The formula is deterministic and runs in your browser. Read the reference below for the method used by this tool.

  • FAQs on Labour Codes

    Ministry of Labour and Employment · official reference · Checked 9 August 2026

    Supports: gratuity events · five-year rule · fixed-term one-year rule · 15-day wage method

    Effective 21 November 2025

Questions

Frequently asked

Is five years always required?

The official labour FAQ lists exceptions including death, disablement and fixed-term employment; confirm the applicable employment facts.

Keep going

Related tools

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Source register checked 9 August 2026.