Gratuity Calculator

What gratuity is owed, and when

Gratuity is a lump-sum payment employers owe employees who've completed at least 5 years of continuous service, under the Payment of Gratuity Act, 1972. It's calculated from an employee's last drawn salary and total years of service — not their full career earnings.

This calculator applies the standard formula used for employees covered under the Act, and is useful for both employees estimating what they're owed on exit and owners budgeting for the gratuity liability of long-tenured staff. The statutory ceiling on gratuity is revised periodically by the government, so confirm the current cap before relying on this for a final settlement figure.