Gratuity Calculator
Estimate gratuity using last drawn eligible salary and completed years of service.
Gratuity Calculator
Use this page as a practical planning guide and verify official rules before final use.
Formula: Gratuity = Last Drawn Eligible Salary x 15 x Completed Years of Service / 26.
Gratuity Eligibility and Salary Inputs
Gratuity estimates usually depend on last drawn basic salary plus dearness allowance, completed years of service, and whether the employee is covered under the Payment of Gratuity Act. Rounding of service years can affect the result, so check completed service carefully.
Use the calculator as a working estimate and keep source documents nearby. If the number will be used in payroll, accounting, tax filing, or a customer document, compare the result with the latest rule, company policy, or invoice format before final use.
What this page does
The Gratuity Calculator estimates a long-service benefit using last drawn eligible salary and completed years of service. It is useful before reviewing an employer settlement.
Formula or method
Gratuity = Last drawn eligible salary x 15 x completed years of service / 26.
Input guide
| Eligible salary | Usually basic salary plus dearness allowance where applicable. |
|---|---|
| Completed years | Years counted under gratuity rules. |
| 15/26 factor | Common formula factor for covered employees. |
| Estimated gratuity | Calculated long-service benefit estimate. |
Real-world use cases
- Estimate gratuity before leaving a job.
- Understand how completed service years affect the amount.
- Compare employer settlement with a rough formula result.
- Use with Salary and PF calculators for payroll planning.
Mistakes to avoid
- Using total CTC instead of eligible salary.
- Counting incomplete service years incorrectly.
- Ignoring eligibility conditions.
- Assuming the estimate overrides employer or statutory rules.
Limitations
This page estimates gratuity using the common formula. Final settlement depends on eligible salary, completed service, employer records and applicable gratuity rules.
Detailed explanation
The Gratuity Calculator is useful before resignation, retirement or settlement discussions when you want a rough estimate from eligible salary and completed service.
Use this page as a preparation step, not as a final authority. The calculator or checklist can make the working easier, but payroll, GST and invoice details should still match official records.
Example situations
| Eligible salary | Usually basic salary plus DA where applicable. |
|---|---|
| Completed service | Years of service can change the amount significantly. |
| Employer record | Final settlement should match official employment records. |
Gratuity example notes
If eligible salary is Rs. 40,000 and completed service is 6 years, the common estimate is 40,000 x 15 x 6 / 26. This gives a planning number before checking HR records. Final settlement can differ if eligibility, service rounding or salary definition differs.
| Situation | What to check |
|---|---|
| Resignation planning | Check completed years before estimating. |
| Settlement review | Compare employer calculation with eligible salary and service record. |
FAQs
Is gratuity based on CTC?
Usually no. It is based on eligible salary components, not total CTC.
Does this confirm eligibility?
No. Check service period and applicable rules.
Can the final amount differ?
Yes. Employer policy, eligibility and legal rules can affect final settlement.