Gratuity is a lump-sum payment provided to employees in India as a reward for their long-term service, governed by the Payment of Gratuity Act, 1972. It’s payable upon retirement, resignation, or death after a minimum of five years of continuous service (waived in cases of death or disablement).
Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26
Here, "Last Drawn Salary" includes basic salary and dearness allowance, and each year of service beyond six months is rounded up.
Our free Gratuity Calculator helps Indian employees estimate their gratuity amount instantly. Whether you're planning retirement or checking eligibility, this tool provides accurate results based on the Payment of Gratuity Act, 1972, ensuring you understand your entitled benefits.