Gratuity Calculator

This calculator helps you to compute the gratuity amount payable to an employee in India based on the last drawn salary and years of service, as per the Payment of Gratuity Act.

Calculate Your Gratuity

Results

Gratuity Amount ₹0.00

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.