Gratuity Calculator

Estimate gratuity from last-drawn eligible monthly wages and completed service.

Adjust your plan

Enter an exact value or use a slider. Your result updates instantly.

Formula, example and assumptions
Estimated gratuity after ceiling₹3,46,153.85
Indian rupees
Indian rupees

Your result

Local calculation
Estimated gratuity after ceiling₹3,46,153.85About ₹3.46 lakh

The gratuity estimate is one payment based on eligible monthly wages and service length. The result applies your entered ceiling and separately shows the formula amount before that limit.

Completed years of service
10
Additional completed months
0
Applicable gratuity ceiling
₹20,00,000
See how this is calculated

Result breakdown

Formula amount before ceiling
₹3,46,153.85 About ₹3.46 lakh
Eligible service years used
10
Amount above entered ceiling
₹0.00
Check the inputs and method

These are your current inputs, not the worked example further down the page.

Last-drawn monthly basic salary plus DA
₹60,000
Completed years of service
10
Additional completed months
0
Applicable gratuity ceiling
₹20,00,000

Method

Eligible years Y = completed years + 1 when additional months > 6, otherwise completed years. Formula gratuity G = monthly wages × 15/26 × Y. Payable = min(G,entered ceiling); amount above ceiling = max(0,G−ceiling).

Read the worked example and assumptions

How this calculation works

Estimate gratuity using the displayed 15/26 wage formula and an entered payment ceiling. The service-rounding rule and the ceiling are separate: rounding changes eligible years, while the ceiling can reduce the formula amount. This is an amount calculator, not a decision on employment eligibility or a different statutory arrangement.

Eligible years Y = completed years + 1 when additional months > 6, otherwise completed years. Formula gratuity G = monthly wages × 15/26 × Y. Payable = min(G,entered ceiling); amount above ceiling = max(0,G−ceiling).

Worked example

This example uses illustrative inputs. Your current result is shown above.

Enter ₹52,000 monthly wages, 10 completed years, 7 additional months and a ₹20,00,000 ceiling. Service rounds to 11 years. Gratuity = ₹52,000 × 15/26 × 11 = ₹3,30,000, all below the entered ceiling.

Assumptions and limits

  • The entered wage amount is assumed to be the applicable monthly wage base for this 15/26 formula.
  • Exactly six additional months do not round up; more than six do.
  • The calculator does not establish qualifying service, coverage, fixed-term employment treatment, tax exemption or whether a more favourable employment agreement applies.

Questions people ask

Why do six and seven extra months give different amounts?

This model counts an extra year only when the remaining service exceeds six months. It does not round six months upward.

Is the ceiling also my tax-free limit?

The input only caps the calculated payment. Payment entitlement and income-tax exemption are different questions and are not assessed together here.

Can I use gross monthly salary?

Only if that equals the applicable wage base for your case. Including allowances that do not belong in the relevant base can overstate the estimate; verify the components with your employment records.

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