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Gratuity Calculator

Calculate gratuity payable under the Payment of Gratuity Act.

How this is calculated
Gratuity = (15 × last drawn monthly salary × years of service) / 26, capped at ₹20 lakh

Assumptions used in this calculation

  • Coverage: Assumes the employee is covered under the Payment of Gratuity Act, 1972 (most private-sector employees).
  • Statutory cap: Gratuity is capped at ₹20 lakh regardless of the formula result.

About this calculator

The gratuity calculator estimates the lump-sum gratuity payable to an employee under the Payment of Gratuity Act, 1972, based on last drawn salary and years of service, capped at the statutory limit of ₹20 lakh.

Worked example

₹50,000 last drawn salary, 10 years of service

Result: Gratuity ≈ ₹2,88,462

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