Statutory calculator
Gratuity Calculator
Estimate gratuity from your last-drawn statutory wages and completed service, while keeping eligibility separate from the mathematical result.
Estimate Gratuity
Enter service months separately so the statutory rounding rule can be applied.
Your values stay private. Calculations run in your browser and are not stored.
Estimated Gratuity
How Gratuity Is Calculated
The estimate uses: last-drawn statutory wages × 15 ÷ 26 × qualifying years. A service part exceeding six months is rounded up to another year; exactly six months is not. The statutory result is capped at ₹20,00,000.
Last reviewed: 23 September 2026. Calculation basis: Ministry of Labour Social Security Code FAQ.
How to Use
- Enter last-drawn statutory wages confirmed by payroll, including any applicable allowance add-back.
- Enter completed years and additional months.
- Calculate and review the eligibility note.
Gratuity Eligibility
Five years of continuous service remains the usual condition for regular employment on retirement or resignation. The condition does not apply to death, disablement or expiration of fixed-term employment. The Ministry’s March 2026 clarification says a fixed-term employee qualifies after one year under the contract. Fixed-term and deceased-employee cases use pro-rata treatment; seasonal and piece-rated work also need separate calculations. This tool models ordinary monthly-rated employment, not those special cases. See the fixed-term employment clarification.
Frequently Asked Questions
Which salary is used?
Use last-drawn wages under section 2(88) of the Social Security Code. Payroll should confirm which components are included.
How are service months rounded?
For the standard formula, only a part of a year exceeding six months is rounded up. Six months exactly is not rounded up.
Can gratuity exceed ₹20 lakh?
This statutory estimate is capped at ₹20,00,000. Better terms under an employment contract, agreement or award may provide more; this tool does not calculate them.