Gratuity calculator for India

How this is calculated

1. Fifteen days of wages = last drawn monthly wages ÷ 26 × 15.
2. Counted years = your completed years, plus one more if your extra months are more than six. Exactly six months does not count as a year.
3. Gratuity = fifteen days of wages × counted years.
4. If the result is above Rs 20,00,000, the amount shown is Rs 20,00,000.
5. Standard cases need at least five years of continuous service. The calculator checks your completed years, before the six-month rounding.

Example: wages of Rs 50,000 over 10 years. Rs 50,000 ÷ 26 × 15 = Rs 28,846.15 a year of service, times 10 = Rs 2,88,461.54.

Fixed-term employees: the Code on Social Security, 2020 (section 53) makes gratuity payable when a fixed-term contract ends, without the five-year minimum, on a pro rata basis. This calculator does not model fixed-term proration. Ask your employer how your contract term is counted.

Assumptions and sources

Last checked 30 October 2026.

• Formula: for every completed year of service or part thereof in excess of six months, fifteen days of wages on the rate last drawn. For a monthly rated employee, fifteen days of wages is the monthly wage divided by 26 and multiplied by 15 (section 53(2) and Explanation 3). Source: Code on Social Security, 2020, Ministry of Labour and Employment.
• Wages include basic pay and dearness allowance, and exclude house rent allowance, overtime, commission and bonus (section 2(88)). Your employer may pay on a wider definition. Source: Code on Social Security, 2020, Ministry of Labour and Employment.
• Ceiling: Rs 20,00,000, the maximum notified by the Central Government on 29 March 2018. The Code says the ceiling is the amount the Central Government notifies, so check the current notification. Source: Ministry of Labour and Employment press release, 30 March 2018 (PIB).
• Five years of continuous service is the standard minimum. It does not apply on death, disablement or the end of a fixed term (section 53(1)).
• The amount is before tax. Government employees covered by other gratuity rules, and employers who pay more under a contract or policy, are not modelled.

Frequently asked questions

Do I get gratuity if I leave after four years and eight months?

In the standard case the five-year minimum applies, so usually not under the statute. Your contract or company policy may give more. Ask HR in writing.

Why divide by 26 and not 30?

The law treats a month as 26 working days for gratuity, so fifteen days of wages is the monthly wage ÷ 26 × 15.

Does 5 years and 6 months round up?

No. Only more than six extra months count as another year, so 5 years and 7 months counts as 6 years.

What is the maximum gratuity?

Rs 20,00,000 under the current Central Government notification. Employers may pay more by contract.

Does the calculator store my numbers?

No. It runs in your browser, stores nothing and sends nothing.