Online Gratuity Calculator
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A gratuity calculator is a financial tool that helps employees estimate the amount they are eligible to receive as gratuity at the end of their service. Governed by the Payment of Gratuity Act, 1972 in India, gratuity is a lump sum benefit paid by an employer to employees who have completed at least five years of continuous service.
Using a gratuity calculator online can save time and provide accurate estimates instantly. It is especially useful during job changes, retirement planning, or when negotiating final settlements. The tool is designed for both private and public sector employees to assess their post-employment benefits clearly and easily.
How to Calculate Gratuity Amount?
The most widely used formula is:
Gratuity = (Last drawn salary × 15 × number of years of service) ÷ 26
Where:
Last drawn salary = Basic salary + Dearness Allowance
15 = Number of days’ salary considered for every completed year
26 = Number of working days in a month (as per the Act)
For example, if your last drawn salary is ₹30,000 and you’ve completed 10 years of service:
Gratuity = (30,000 × 15 × 10) ÷ 26 = ₹1,73,077
Using a gratuity amount calculator online ensures you get a quick and precise estimate without manual calculations.