What is gratuity?
Gratuity is a lump sum your employer pays when you leave after long service, usually 5 years or more. It equals 15 days' salary for each year of service, based on your last basic pay plus DA.
Ready answers
How to use this calculator
- Enter your last monthly basic + DA.
- Enter your years and extra months of service.
- Say whether your employer is covered by the Gratuity Act (10 or more employees).
Formula
Gratuity = Last basic + DA × 15 ÷ 26 × years of service
Read more: Gratuity rules. New to these words? See the money glossary.
Common questions
How much gratuity for 10 years with ₹50,000 basic?
About ₹2.88 lakh (₹50,000 × 15 ÷ 26 × 10). With 10 years and 7 months, it counts as 11 years: about ₹3.17 lakh.
After how many years do I get gratuity?
Usually after 5 years of continuous service. Under the new labour codes, fixed-term employees can get it after 1 year.
Gratuity kaise calculate kare?
Aakhri basic + DA × 15 ÷ 26 × naukri ke saal. 6 mahine se zyada ka hissa poora saal gina jata hai.