What this estimate uses
Last-drawn monthly wages, Completed years, Additional months, Maximum gratuity used.
Work & Salary calculator
Gratuity Calculator India 2026: Salary & Service
What gratuity could your service earn?
Estimate gratuity from last-drawn eligible wages and completed service.
Your estimate
Live result
Estimated gratuity
—How it works
A useful estimate, with the assumptions out in the open.
The estimate uses 15 days of last-drawn eligible wages for each counted year, rounds only service in excess of six months upward, and applies the editable maximum gratuity. Eligibility, wage components and exceptions depend on the applicable employment rules.
This result is an educational estimate. Rates, taxes, fees, product rules, and market returns can change.
India-focused guide
How much gratuity may I receive after my years and months of service?
Enter last-drawn eligible monthly wages, completed years and additional months. The calculator applies the 15/26 formula, rounds only service in excess of six months upward and limits the result to the entered gratuity ceiling.
Important assumption
The estimate uses 15 days of last-drawn eligible wages for each counted year, rounds only service in excess of six months upward, and applies the editable maximum gratuity. Eligibility, wage components and exceptions depend on the applicable employment rules.
Created and maintained byAll Tool Central
Formula and content reviewed16 October 2026
See how estimates are builtCalculation methodology
Detailed guide
Understand the result before using it.
This gratuity calculator applies the 15/26 formula to last-drawn eligible monthly wages and counted service, then limits the estimate to the maximum gratuity entered by the user.
How service and wages enter the formula
For the standard monthly-rated formula, 15 days of eligible wages are valued using a 26-day month for every counted year of service. The precise wage components and legal coverage depend on the applicable employment rules.
A part-year is rounded up only when it is in excess of six months. Exactly six additional months therefore remains in the lower completed-year count in this calculator.
FormulaGratuity before ceiling = last-drawn monthly eligible wages × 15 ÷ 26 × counted years
Example: the six-month boundary
At eligible wages of ₹60,000 a month, one counted year is worth about ₹34,615. Moving from six to seven additional months changes the counted service from eight to nine years.
| Actual service entered | Counted service | Formula amount |
|---|---|---|
| 8 years 6 months | 8 years | ₹2,76,923 |
| 8 years 7 months | 9 years | ₹3,11,538 |
| 40 years | 40 years | ₹13,84,615 |
Eligibility and the maximum amount are separate questions
The general rule commonly uses five years of continuous service, with statutory exceptions such as death or disablement and specific treatment for fixed-term employment. The calculator estimates an amount; it does not decide whether a claim is legally payable.
The advanced field defaults to ₹20 lakh, the ceiling reported in Labour Ministry material at this review date. A notified maximum or a more favourable employer scheme may change the payable amount, so the ceiling is editable.
What to verify with the employer
- Confirm the eligible last-drawn wage components, not total CTC.
- Check continuous-service records and the actual final working date.
- Confirm whether a more favourable contractual gratuity scheme applies.
- Treat income-tax exemption as a separate calculation from gross gratuity payable.
Common questions
Frequently asked questions
Are six additional months rounded up?
The statutory wording uses service in excess of six months. This calculator rounds seven to eleven months upward but does not round exactly six months.
Does the calculator use gross salary or CTC?
Neither should be entered automatically. Use last-drawn monthly wages eligible under the applicable gratuity rule, which may be narrower than gross salary or CTC.
Is five years always required?
Five years is the common general condition, but statutory exceptions and fixed-term-employment provisions can apply. The calculator does not determine legal eligibility.
Is gratuity always capped at ₹20 lakh?
The field defaults to ₹20 lakh based on the reviewed official material, but a later notification or a more favourable employer arrangement can change the amount. Edit it if a different maximum applies.
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