Gratuity Calculator
Gratuity is a lump sum that employers in India may owe a worker who leaves after several years of service. This page estimates it with the formula in the Payment of Gratuity Act. This is an unofficial estimate, and the law and your employer's records have the real figures.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
The Act counts 15 days of pay for each completed year of service. A month is taken as 26 working days, so the formula is last salary times 15 over 26, times years. Under the Act, more than six months in a year counts as a full year. Enter the whole-year count your employer uses.
The result is capped by law. The cap is an input here, so you can change it if the published figure has moved.
Worked example
With a last salary of $2,500.00 and 8 completed years, the formula gives $11,538.46. After the cap, the estimate is $11,538.46.
Questions
Which salary is used?
The last salary drawn before leaving, usually basic pay plus dearness allowance. Check the Act for the exact definition that applies to you.
Does this apply to every worker?
The Act covers many workplaces but not all, and it has its own rules for some kinds of work. Check the published law for your case.
Why is there a cap?
The law limits the amount payable, so a very high salary does not raise the lump sum past the set maximum.
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