India gratuity calculator
For anyone working in India or checking dues from an Indian employer: enter basic pay plus DA and your service to see the amount in rupees.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter last monthly basic pay plus da, years of service, extra months, extra days, is the employer covered by the gratuity law? and why the job ended.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Covered by the Act: gratuity = (basic + DA) × 15 × years of service ÷ 26, where a part year over 6 months counts as a full year. Not covered: pay × 15 ÷ 30 for each completed year only. The cap is then applied.
Example
Inputs: Last monthly basic pay plus DA = 60,000 INR, Years of service = 7 years, Extra months = 8 months, Extra days = 0 days, Is the employer covered by the gratuity law? = Covered (10 or more staff): divide by 26. Result: Gratuity due: 276,923.08 INR; Gratuity before the cap: 276,923.08 INR; Years counted: 8 years.
Limits and caveats
- The tool requires 5 full years of continuous service; some Indian High Courts accept 4 years and 240 days.
- The Code on Social Security 2020 keeps the 15 days rule and lowers the minimum to 1 year for fixed-term staff; an employer scheme may pay more.
- Under the new labour codes, excluded allowances above half of total pay may be added back to wages, so enter the adjusted figure.
Questions about this tool
Why divide by 26?
The law treats a month as 26 working days after weekly rest days, so 15 days of pay is salary × 15 ÷ 26.
Is a part year counted?
For a covered employer, anything over 6 months counts as a full year, so 7 years and 7 months counts as 8.
Is gratuity taxed?
For private sector staff it is tax free up to Rs 20 lakh over a career, and anything above is added to taxable income.