Statutory calculator
Gratuity Calculator
Estimate gratuity from your last-drawn statutory wages and completed service, while keeping eligibility separate from the mathematical result.
Estimate Gratuity
Enter service months separately so the statutory rounding rule can be applied.
Your values stay private. Calculations run in your browser and are not stored.
Estimated Gratuity
How Gratuity Is Calculated
The estimate uses: last-drawn statutory wages × 15 ÷ 26 × qualifying years. A service part exceeding six months is rounded up to another year; exactly six months is not. The statutory result is capped at ₹20,00,000.
Last reviewed: September 2026. Calculation basis: Ministry of Labour Social Security Code FAQ.
How to Use
- Enter last-drawn Basic Salary plus DA.
- Enter completed years and additional months.
- Calculate and review the eligibility note.
Gratuity Eligibility
Five years of continuous service remains the usual condition for regular employment on retirement or resignation. The condition does not apply to death, disablement or expiration of fixed-term employment. Fixed-term cases use special pro-rata treatment and should be verified separately; this calculator models the standard completed-year formula.
Frequently Asked Questions
Which salary is used?
Use last-drawn wages under section 2(88) of the Social Security Code. Payroll should confirm which components are included.
How are service months rounded?
For the standard formula, only a part of a year exceeding six months is rounded up. Six months exactly is not rounded up.
Can gratuity exceed ₹20 lakh?
The calculator limits the statutory estimate to the currently notified ₹20,00,000 ceiling.