Gratuity Calculator
What gratuity is payable under the Payment of Gratuity Act, 1972, with the formula and the section it comes from.
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Your figures
Basic salary plus dearness allowance ONLY. s.2(s) excludes bonus, HRA, overtime and other allowances — entering gross pay here overstates the result.
A part-year in excess of six months counts as a full year.
Gratuity payable
Payable
₹2,88,462
₹28,846.00 × 10 years
- Fifteen days' wages (wages × 15 ÷ 26)
- ₹28,846.00
- Years counted
- 10
- Before the statutory ceiling
- ₹2,88,462
What this is based on
- Payment of Gratuity Act, 1972 — s.4(1)
- Gratuity is payable on termination after five years of continuous service. The five-year requirement does not apply where employment ends by death or disablement.
- Payment of Gratuity Act, 1972 — s.4(2)
- Fifteen days’ wages for every completed year of service, or part of a year in excess of six months, based on the wages last drawn.
- Payment of Gratuity Act, 1972 — s.4(2), Explanation
- For a monthly-rated employee, fifteen days’ wages is the monthly wages divided by twenty-six and multiplied by fifteen. The divisor of 26 is statutory.
- Payment of Gratuity Act, 1972 — s.4(3)
- Gratuity payable is capped at ₹20,00,000.
- Payment of Gratuity Act, 1972 — s.2(s)
- Wages means basic and dearness allowance. Bonus, house rent allowance, overtime and other allowances are excluded.
This is a calculation tool, not legal advice. Statutory rates, ceilings and thresholds change — check the current position before relying on a figure for a payment. More on payroll in the resources below.
In the product
Payroll Software
Statutory-accurate payroll in hours, not days.
- Automated PF (EPFO), ESI (ESIC), PT and TDS across every state you operate in
- Per-state Professional Tax handling — including states that levy none
- Form 24Q, Form 16 and ECR files generated from the payroll run itself