Gratuity Calculator

Calculate statutory gratuity under the Payment of Gratuity Act 1972 (Code on Social Security 2020). Updated for 2026 rules including fixed-term employee eligibility.

Gratuity Calculator (2026)

Last drawn Basic Salary + DA (₹/month)

Years of service

Months in final year (for rounding)

If you completed 10 years and 8 months, enter Years = 10 and Months = 8. Service exceeding 6 months in the final year rounds up to the next full year.

Employer type

Gratuity Formula

Covered employers (Act):
(Basic + DA) × 15 × Years ÷ 26

Not covered (voluntary):
(Basic + DA) × 15 × Years ÷ 30

Minimum service	5 years (waived for death/disability)
Fixed-term employees	1 year (from Nov 21, 2025)
Statutory cap	₹20 lakh
Tax exemption (private)	Up to ₹20 lakh under Section 10(10)
Payment deadline	Within 30 days of becoming due
Late payment interest	10% per annum

Service in final year exceeding 6 months rounds up. Exactly 6 months does not round up. Calculated on Basic + DA only — not CTC, gross salary, or HRA.

Estimate only. Actual eligibility depends on continuous service, establishment coverage, and applicable state rules. Consult a labour law expert or CA for compliance.