Gratuity Calculator
Calculate your retirement gratuity payout online under the Payment of Gratuity Act, 1972 using your basic salary and service tenure.
Service details
(15 × Salary × Years) / 26.
Payout Estimation
What is Gratuity?
Gratuity is a monetary perk provided by employers to employees in appreciation of continuous services rendered over a long period. In India, it is regulated by the **Payment of Gratuity Act, 1972**. Any organization employing 10 or more people is bound to pay gratuity to employees who resign, retire, or are laid off after serving at least 5 years.
How Gratuity Payout is Calculated?
The formula assumes a standard 26-day working month: `Gratuity = (15 * Last Drawn Monthly Salary * Years of service) / 26`. If you served 10 years and your last basic monthly salary + DA was ₹50,000, your gratuity will be calculated as `(15 * 50,000 * 10) / 26 = ₹2,88,461`.