Gratuity Calculator

Method and assumptions

• Monthly-rated employees: gratuity equals (last drawn wages × 15 × years of service) ÷ 26.
• Service rounding: a fraction of more than six months in the final year is treated as one full year. Fixed-term employees under the Code on Social Security, 2020 receive gratuity on a pro-rata basis once one year of service is completed.
• Eligibility is tested on actual continuous service, not on the rounded figure. Several High Courts have held that 4 years and 240 days in the fifth year qualifies; that reading is not applied here by default.
• The five-year qualifying period does not apply where service ends due to death or disablement.
• Statutory ceiling of ₹20,00,000 applies under Section 4(3) of the 1972 Act and Section 53(2) of the Code on Social Security, 2020.
• Wages must include basic, dearness allowance and retaining allowance. The Code’s 50% floor rule under Section 2(88) may apply once notified.