What is a Gratuity Calculator?
A Gratuity Calculator estimates the lump sum amount your employer owes you as a token of appreciation for long-term service. Under the Payment of Gratuity Act, 1972, any employee who completes 5 continuous years of service in an organization with 10 or more employees is legally entitled to gratuity.
Gratuity Calculation Formula (15/26 Rule)
The mathematical formula used to calculate gratuity is:
Gratuity = (15 / 26) × Last Drawn Basic Salary × Tenure of Service
Our calculator applies this exact statutory formula, considering a month as 26 working days. Note: The maximum tax-exempt gratuity limit in India is currently capped at ₹20 Lakhs.