Calculate gratuity with Payment of Gratuity Act rules and labour-code wage base option: 15/26 formula, 5-year condition (death/disablement exception), ₹20 lakh cap.
Educational estimate; verify with payroll/official notifications; not affiliated with EPFO/Govt.
For employees covered under the Payment of Gratuity Act, 1972, the gratuity amount is calculated using a fixed statutory formula based on your last drawn wages and total years of service:
Gratuity = (Last drawn Basic + DA) ÷ 26 × 15 × Years of Service
| Last drawn Basic + DA | Years of service | Calculation | Gratuity payable |
|---|---|---|---|
| ₹50,000 | 10 years | (50,000 ÷ 26) × 15 × 10 | ₹2,88,462 |
| ₹30,000 | 7 years | (30,000 ÷ 26) × 15 × 7 | ₹1,21,154 |
| ₹40,000 | 6 years 7 months → 7 years | (40,000 ÷ 26) × 15 × 7 | ₹1,61,538 |
The final gratuity is capped at the statutory maximum of ₹20 lakh. Any amount above this cap is paid only if your employer's policy is more generous, and the excess may be taxable. For employees not covered under the Act, the formula uses 15 days over a 30-day month instead of 26.
Gratuity = (Last drawn Basic + DA ÷ 26) × 15 × years of service. Example: on ₹50,000 Basic + DA with 10 years of service, gratuity = (50,000 ÷ 26) × 15 × 10 = ₹2,88,462. The 26 represents working days in a month and 15 represents 15 days' wages for each completed year.
Enter your last drawn monthly Basic + DA and your total years of continuous service. The gratuity calculator applies the Payment of Gratuity Act 15/26 formula, rounds the final year if you served more than 6 months, and caps the result at the ₹20 lakh statutory limit. Switch to Accurate mode to set work-week type, exact days served, and death/disablement exceptions.
Monthly-rated employees get (Last drawn wages / 26) × 15 × years of service (rounded if >6 months in final year).
Minimum 5 years continuous service unless death or disablement; Accurate mode lets you mark death/disablement.
Exactly 6 months does not round up; more than 6 months rounds up to the next full year.
6-day work week organisations: 240 days worked in a year = continuous service (High Courts: Madras, Kerala). 5-day work week or mines: 190-day threshold applies. If you have 4 years + enough days in year 5, you are deemed to have completed 5 years. Set work week type and days in Accurate mode.
Use last drawn Basic + DA (excluding bonuses/allowances); piece-rated/seasonal employees differ.
The statutory cap defaults to ₹20 lakh; you can toggle off or edit if employer policy differs.
Educational estimate; verify with payroll or official notifications. Not affiliated with EPFO or Government.
Educational estimate only. Validate with payroll records and official notifications.