Pay & Employment
Gratuity Calculator
Gratuity under the Payment of Gratuity Act: 15 days' wages per year of service after 5 years, up to ₹20 lakh.
Result
Updates as you typeGratuity payable
₹3,17,307.65
- Years counted
- 11
- Gratuity per year (15/26 of wages)
- ₹28,846.15
How it's calculated
Gratuity is a lump sum an employer pays when you leave after at least 5 years of continuous service. The Payment of Gratuity Act fixes it at 15 days' wages for every completed year, with a part of a year over 6 months counting as a full year; for a monthly-paid employee, 15 days' wages are the monthly wage divided by 26 and multiplied by 15. The total cannot exceed the notified maximum of ₹20,00,000.
Worked example
₹50,000 last drawn wages, 10 years and 7 months of service:
- Years counted: 10 + 1 (7 months exceed 6) = 11
- Per year: ₹50,000 / 26 × 15 = ₹28,846.15
- Gratuity: ₹28,846.15 × 11 = ₹3,17,307.65
Gratuity table
| Last wages | 5 years | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|---|
| Last wages: ₹20,000 | 5 years₹57,692.30 | 10 years₹1,15,384.60 | 15 years₹1,73,076.90 | 20 years₹2,30,769.20 | 30 years₹3,46,153.80 |
| Last wages: ₹30,000 | 5 years₹86,538.45 | 10 years₹1,73,076.90 | 15 years₹2,59,615.35 | 20 years₹3,46,153.80 | 30 years₹5,19,230.70 |
| Last wages: ₹50,000 | 5 years₹1,44,230.75 | 10 years₹2,88,461.50 | 15 years₹4,32,692.25 | 20 years₹5,76,923 | 30 years₹8,65,384.50 |
| Last wages: ₹75,000 | 5 years₹2,16,346.15 | 10 years₹4,32,692.30 | 15 years₹6,49,038.45 | 20 years₹8,65,384.60 | 30 years₹12,98,076.90 |
| Last wages: ₹1,00,000 | 5 years₹2,88,461.55 | 10 years₹5,76,923.10 | 15 years₹8,65,384.65 | 20 years₹11,53,846.20 | 30 years₹17,30,769.30 |
Frequently asked questions
How much gratuity do I get after 10 years on ₹50,000 basic pay?
For 10 years and 7 months the Act counts 11 years (a part of a year over six months counts as a full year): ₹50,000 ÷ 26 × 15 = ₹28,846.15 per year, so ₹3,17,307.65 in total.
What is the gratuity formula?
Last drawn wages (basic pay plus dearness allowance) × 15 ÷ 26 × completed years of service. The 26 stands for the working days in a month and 15 for the days' wages payable for each year (section 4(2) of the Payment of Gratuity Act, 1972). Employers not covered by the Act often use 15 ÷ 30 instead.
Who is eligible for gratuity?
Employees of establishments covered by the Act with at least 5 years of continuous service, on resignation, retirement, superannuation or termination. The five-year condition does not apply on death or disablement. Several High Courts have treated 4 years and 240 days in the fifth year as five years; the calculator follows the Act's text.
What is the maximum gratuity?
₹20,00,000, notified by the Ministry of Labour and Employment on 29 March 2018 under the 2018 amendment to section 4(3). An employer can pay more under a contract or scheme. The same ₹20,00,000 is the limit of the income tax exemption for non-government employees under section 10(10).
Which salary counts?
Wages last drawn: basic pay and dearness allowance, including any commission paid as a fixed percentage of sales. HRA, bonus, overtime and other allowances are excluded.
Sources
Payment of Gratuity Act formula for covered establishments; contractual schemes, the 15/30 convention and judicial readings of the five-year rule are not applied. Results are for guidance only.
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