Gratuity Calculator
Calculate gratuity payable under the Payment of Gratuity Act.
Assumptions used in this calculation
- Coverage: Assumes the employee is covered under the Payment of Gratuity Act, 1972 (most private-sector employees).India
- Statutory cap: Gratuity is capped at ₹20 lakh regardless of the formula result.India
About this calculator
Gratuity is a statutory lump-sum benefit most employees don't think about until they're resigning or retiring, and its formula, 15 days of salary for every completed year of service, uses a non-obvious divisor (26, the assumed number of working days in a month) that trips people up when they try to compute it manually. This calculator applies Gratuity = (15 × last drawn monthly salary × years of service) ÷ 26 to your inputs, then caps the result at the statutory limit of ₹20 lakh as required under the Payment of Gratuity Act, 1972. It gives you a quick, accurate estimate of what you're entitled to when planning a job change or retirement, without needing to remember the exact formula or manually apply the cap, and it complements salary and retirement planning by showing this one-time payout alongside your other savings.
Worked example
₹50,000 last drawn salary, 10 years of service
Result: Gratuity ≈ ₹2,88,462
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