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Gratuity Calculator
Estimate your gratuity from your last drawn monthly salary and years of service. It uses the 15 days' wages per year formula based on 26 working days.
Calculate gratuity payout based on salary and service years.
Free to run · to save projections to your live dashboard
Enter values and click Calculate to see results
Worked example
Calculated by the same engine as the calculator above.
- Inputs
- Last Drawn Monthly Salary
- ₹80,000
- Years of Service
- 10
- Result
- Gratuity Amount
- ₹4,61,538
Formula
G = S × 15 × Y / 26
- G = gratuity amount
- S = last drawn monthly salary (basic plus dearness allowance)
- Y = years of service
- 15 / 26 = 15 days' wages out of 26 working days in a month
Assumptions
- Uses the 15/26 formula applied to employees covered by the Payment of Gratuity Act.
- Years of service are used exactly as entered; the calculator does not round part years or check the minimum service requirement.
- No statutory ceiling on gratuity amount is applied.
- Tax on gratuity is not calculated.
- Educational estimate only, not financial advice. Capitallytics does not execute transactions.
Gratuity Calculator FAQ
Answers about how this calculator works.
What salary should I enter for gratuity?
Enter your last drawn monthly basic salary plus dearness allowance, as that is what the gratuity formula uses. Other allowances are usually excluded.
Why is the formula divided by 26?
Gratuity counts 15 days' wages for each year of service, and a month is treated as 26 working days. So one year is worth 15/26 of a monthly salary.
Does the calculator check if I am eligible?
No. It computes the formula for any years entered. Eligibility rules, such as minimum continuous service, are not checked.
Does it apply the maximum gratuity limit?
No cap is applied. If your result is large, check the current statutory and tax-exempt limits separately.
How should I enter part years?
The calculator uses the number exactly as entered. Rounding rules for part years depend on the law and your employer, so enter the years you expect to be counted.