Gratuity Calculator
Calculate your retirement gratuity payout online under the Payment of Gratuity Act, 1972 using your basic salary and service tenure.
Last Updated: May 2026
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Fact-checked & Reviewed by EasyLedger Editorial Team
Service details
₹1,000
₹10 Lakh
1 Year
50 Years
Gratuity Formula: Gratuity payout is calculated using:
(15 × Salary × Years) / 26.
Payout Estimation
Monthly Salary (Basic + DA)
₹0
Tenure of Service
-
Estimated Gratuity
₹0
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.