Formula: (Basic + DA) x 15 x eligible service years / 26.
Gratuity Calculation Summary
This Gratuity Calculator helps estimate gratuity for employees in India using the common formula based on last drawn Basic salary plus Dearness Allowance, completed service years and extra months of service. The calculator is useful for resignation planning, retirement planning and understanding an estimated end-of-service benefit.
For monthly rated employees covered by the usual gratuity formula, gratuity is commonly calculated as Basic + DA multiplied by 15 days of wages for each eligible year of service, divided by 26 working days. This tool uses that simple 15 / 26 method.
How To Calculate Gratuity
- Enter your last drawn monthly Basic + DA amount.
- Enter total completed years of service.
- Enter extra months of service.
- The calculator rounds service up when the extra months are more than 6.
Gratuity Formula
The formula used here is: Gratuity = Last drawn Basic + DA x 15 x eligible service years / 26. For example, if Basic + DA is Rs 50,000 and eligible service is 7 years, the estimated gratuity is Rs 50,000 x 15 x 7 / 26.
Frequently Asked Questions
What salary should I enter?
Enter the last drawn monthly Basic salary plus Dearness Allowance. Do not enter the full CTC unless your employer specifically calculates gratuity on a different wage base.
Why does the calculator round months?
The Payment of Gratuity Act wording refers to a completed year of service or part of a year in excess of six months. This calculator rounds up when the extra months entered are more than 6.
Is this a legal final amount?
No. This is an estimate for general information. Final gratuity can depend on employment type, applicable law, company policy, tax rules, wage definition and exceptions such as death or disablement.