Gratuity Calculator
Estimate gratuity payable based on last drawn salary and years of service.
Calculate Your Gratuity
Results
Data Source and Methodology
All calculations are strictly based on the formulas provided by the Payment of Gratuity Act of India.
The Formula Explained
Gratuity Formula: Gratuity = (Last Drawn Salary × Years of Service × 15) / 26
Glossary of Terms
- Last Drawn Salary: The monthly salary last received by the employee.
- Years of Service: Total years the employee has worked with the organization.
Example: Step-by-Step
For an employee with a last drawn salary of ₹50,000 and 5 years of service, the gratuity is calculated as:
Gratuity = (50,000 × 5 × 15) / 26 = ₹144,230.77
Frequently Asked Questions (FAQ)
What is Gratuity?
Gratuity is a monetary benefit given by an employer to an employee for the services rendered in the company.
How is Gratuity calculated?
Gratuity is calculated based on the employee's last drawn salary and years of service in the organization.
Formula (LaTeX) + variables + units
','
Gratuity Formula: Gratuity = (Last Drawn Salary × Years of Service × 15) / 26
- T = property tax (annual or monthly depending on input) (currency)
- NIST — Weights and measures — nist.gov · Accessed 2026-01-19
https://www.nist.gov/pml/weights-and-measures - NIST — SI units — nist.gov · Accessed 2026-01-19
https://www.nist.gov/pml/owm/metric-si/si-units
Last code update: 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.