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Gratuity Calculator
Calculate your gratuity amount as per the Payment of Gratuity Act, 1972. Gratuity is a lump sum payment made by an employer to an employee for services rendered in the company.
About This Tool
The Gratuity Calculator helps you estimate the gratuity amount you are eligible to receive based on your last drawn salary and years of service as per Indian labor laws. It's a key component of your retirement benefits.
How to Use This Tool
- Enter your last drawn Basic Salary per month.
- Enter the Dearness Allowance (DA) component of your salary, if applicable.
- Input the total number of years you have worked in the company.
- Select whether your organization is covered under the Payment of Gratuity Act.
- Click "Calculate Gratuity" to see your estimated amount.
Frequently Asked Questions
What is gratuity?+
Gratuity is a statutory benefit paid by the employer to the employee for services rendered. It is payable on retirement, resignation, death, or disablement after completing 5 years of continuous service.
What is the formula for gratuity calculation?+
For organizations covered under the Gratuity Act, the formula is: Gratuity = (Last drawn salary × 15/26) × Years of service. The "Last drawn salary" includes Basic Salary and Dearness Allowance.