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Work out the gratuity you are owed under the Payment of Gratuity Act, 1972. Enter your last drawn salary and how long you have served — the calculator shows the amount and the formula behind it, so you can check the arithmetic yourself. Everything runs in your browser.
Gratuity payable
₹2,88,462
10 completed years of service · about ₹28,846 per year
gratuity = last drawn monthly salary × 15 ÷ 26 × completed years
With your numbers: ₹50,000.00 × 15 ÷ 26 × 10 = ₹2,88,461.54
A month is taken as 26 working days under the Act. A part-year of more than 6 months counts as a full year; 6 months or less is discarded. Rates as reviewed by HelloTime on 13 May 2026. Reconcile against the issuing authority before using this for an actual settlement.
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<iframe src="https://hellotime.ai/free-tools/embed/gratuity-calculator" title="Gratuity Calculator (India) by HelloTime" width="100%" height="560" style="border:0;border-radius:12px;max-width:560px" loading="lazy"></iframe>
<p style="font:13px/1.5 system-ui,sans-serif;margin:8px 0 0">Powered by <a href="https://hellotime.ai/free-tools/gratuity-calculator">HelloTime Gratuity Calculator</a></p>Gratuity is a lump sum an employer pays for long service. It applies to establishments with ten or more employees, and becomes payable on resignation, retirement, superannuation, death or disablement. The statutory entitlement is 15 days’ wages for every completed year, with a month treated as 26 working days rather than 30 — which is why the formula divides by 26.
Two details catch people out. The salary in the formula is last drawn basic pay plus dearness allowance, not gross salary, so the figure is usually lower than expected. And service is counted in completed years: more than six months rounds up, six months or less is discarded.
Where the employer is not covered by the Act, gratuity is customarily paid on a 30-day month instead of 26, which produces a smaller figure for the same service. The calculator has a toggle for this.
Statutory figures on this page were last reviewed by HelloTime on 2026-05-13. Rates and ceilings change with amendments and notifications — reconcile against the issuing authority before relying on a number for an actual settlement. This is not tax advice.
For employers covered by the Payment of Gratuity Act, gratuity is last drawn monthly salary (basic + dearness allowance) × 15 ÷ 26 × completed years of service. A month is taken as 26 working days, and 15 days' wages are payable for each completed year.
Five years of continuous service. The Act waives that minimum where employment ends because of death or disablement, in which case gratuity is payable regardless of how long the employee served.
Eight. A part-year of more than six months counts as a full year for the gratuity formula, and a part-year of six months or less is discarded.
On last drawn basic pay plus dearness allowance, not on gross salary or total CTC. Allowances such as HRA and conveyance are excluded.
Yes. It runs entirely in your browser, needs no signup, and nothing you type is sent to a server.
HelloTime keeps attendance, leave and payroll on one account, so final settlements draw on hours that were already approved. Free for one user.
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