This gratuity calculator uses the standard formula under India’s Payment of Gratuity Act, 1972 to estimate the gratuity you may receive when you resign or retire. You only need your last drawn monthly salary (basic pay plus dearness allowance) and your length of service.
Bangladesh government employees follow a different rule — use the Pension & Gratuity Calculator instead.
Gratuity formula
For employers covered by the Act: Gratuity = 15 × last drawn monthly salary × years of service ÷ 26. Six months or more in the final year counts as a full year.
For employers not covered by the Act: 15 × average monthly salary × completed years ÷ 30, usually counting only completed years.
Example
With a last monthly basic + DA of ₹50,000 and 10 years of service: 15 × 50,000 × 10 ÷ 26 = ₹2,88,462. With 10 years and 7 months, 11 years are counted, giving ₹3,17,308.
About the maximum limit
The Act sets a ceiling on gratuity, which stood at ₹20 lakh for a long time. New labour codes and government decisions can change the ceiling or the rules, so the limit field above is editable — check the current rule and adjust it if needed.
Frequently asked questions
How many years of service do I need?
Under the traditional rule, at least 5 years of continuous service is required, relaxed in case of death or disablement. Newer labour codes may set different conditions for some workers, such as fixed-term employees — confirm with your employer or HR.
Disclaimer: this is an estimate and not legal or financial advice.