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Enter your last drawn basic + DA and tenure. We'll calculate your gratuity per the statutory formula — accurate to the rupee, including the ₹20L cap.
All figures are estimates based on the statutory formula.
Three things determine your gratuity: your last drawn salary, completed years of service, and whether your employer is covered under the Payment of Gratuity Act.
You need at least 5 years of continuous service with the same employer (waived in death or disablement cases).
if (years >= 5) eligible // or death / disablement
If covered under the Act, any extra service beyond 6 months counts as a full year. If not covered, only complete years count.
covered: months >= 6 ? +1 yr non-covered: floor(years)
Covered: (Basic+DA) × 15 × Years ÷ 26. Not covered: divide by 30 instead. Covered employees are capped at ₹20 L.
gratuity = (basic+da) × 15 × years ÷ 26 // cap ₹20L if covered
Gratuity = (Last drawn Basic + DA) × 15 × Years of service ÷ 26Maximum payable: ₹20,00,000 (under the Payment of Gratuity Act 1972)Primary statute defining eligibility, formula, and the ₹20 lakh cap.
Consolidated wage definition used in gratuity computation.
Industry-standard gratuity provisioning logic used by Indian payrolls.
Tax exemption rules under Section 10(10) of the Income Tax Act.
India-specific gratuity practice for HR teams and exit policies.
Industry reference tool this implementation cross-checks against.
Gratuity = (Basic + DA) × 15 × Years of service ÷ 26. For employees not covered: divide by 30 instead of 26.Run gratuity, PF, ESI, TDS, and full payroll for your entire team in 5 minutes — all on autopilot, fully compliant.
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