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Gratuity Calculator: Wage & Service Illustration

Explore a simplified gratuity formula; confirm legal eligibility and the applicable wage base separately. Enter your last drawn salary and years of service — get your gratuity in seconds.

✓ Formula illustration
✓ Two formula illustrations
✓ Service assumptions
✓ Tax limits explained
🏆 Gratuity Calculator
Select an illustration basis. Confirm the current wage definition, employment category and entitlement separately.
Last Drawn Monthly SalaryApplicable wage base; confirm with payroll
₹
₹5K₹5L
Years of ServiceRounded to nearest year (>6 months rounds up)
Years
1 yr50 yrs
Months in Partial YearExtra months beyond full years
Months
⚡ Quick Examples
General service illustration
Eligibility requires a separate check
5+ years of continuous service
🏆
Your Gratuity Amount
—
as per Payment of Gratuity Act
📐 How It's Calculated
Gratuity = Salary × 15 × Years / 26
Last drawn salary (Basic+DA)—
Years of service (rounded)—
Formula used15/26 rule
Gratuity Payable—
💰 Tax Exemption on Gratuity
✓A tax-exemption ceiling does not by itself determine your exempt amount
✓Employee category, applicable formula and prior exempt receipts need separate checks
✓Tax exemption is not calculated; confirm your employee category, receipts and applicable rules.

Gratuity estimate questions

Model and content reviewed 2 October 2026. Results depend on your inputs.

No. It illustrates a monthly-rated formula. Service conditions, employment type, applicable law and termination circumstances determine entitlement. Current labour-code rules include special treatment for fixed-term employees; the general five-year illustration does not cover every case.
Enter the monthly wage base applicable to the calculation after checking current rules with payroll. The labour-code wage definition can include required adjustments; do not assume the basic salary printed on a payslip is always the complete legal base.
The 15/26 illustration counts a completed year and a part in excess of six months; exactly six months is not rounded up here. The 15/30 illustration uses completed years only. Fixed-term pro-rata calculations and average-wage requirements are outside this model.
No. The tax exemption depends on employee category, calculated eligible amount, amount received, applicable limit and prior exempt receipts. The result is not a final tax computation or determination of the employer’s liability.

Ministry of Labour: current labour-code FAQs

Gratuity formula example: wage base and completed service

The familiar monthly-rated illustration is wage base × 15 × counted years ÷ 26. The wage base is not automatically your gross salary or CTC. Ask payroll which components and current rules apply to your employment.

₹50,000 wage base: what do partial years change?

Using only the 15/26 illustration and its more-than-six-month rounding convention:

Completed serviceYears countedFormula amount before any ceiling
10 years10₹2,88,462
10 years 6 months10₹2,88,462
10 years 7 months11₹3,17,308

What if I have less than five years of service?

The tool does not decide your entitlement. Its general five-year service illustration cannot cover every fixed-term, death, disablement, continuity or other exception. A “check eligibility” result means the model has not assessed your case; it does not mean your legal entitlement is zero.

What changed under the labour codes?

The Labour Ministry’s March 2026 clarification says the revised wage definition applies to gratuity from 21 November 2025. Do not automatically copy an older “basic plus DA” figure without checking the applicable wage definition. This calculator does not reconstruct wages from a CTC breakdown or decide legal coverage.

The 15/30 option is labelled as a legacy formula illustration. It is not a declaration that an establishment is currently outside a law. Tax exemption, service eligibility, contractual benefits and the model’s ₹20 lakh cap are separate questions.

Current wage-base context: Labour Ministry’s 16 March 2026 FAQs.

These are original illustrations, not product quotations or return forecasts. Calculation examples checked 22 October 2026.

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