Leaving your job after 5+ years? You are entitled to gratuity under the Payment of Gratuity Act, 1972. Here's how to calculate it.
Gratuity Formula
Gratuity = (Last drawn salary × 15 × Years of service) / 26
Where:
- Last drawn salary = Basic + DA
- 15 = days per year
- 26 = working days per month
- Maximum gratuity = ₹25 lakh
Quick Reference Table
| Monthly Salary | 5 Years | 10 Years | 20 Years |
|---|---|---|---|
| ₹25,000 | ₹72,115 | ₹1,44,231 | ₹2,88,462 |
| ₹50,000 | ₹1,44,231 | ₹2,88,462 | ₹5,76,923 |
| ₹1,00,000 | ₹2,88,462 | ₹5,76,923 | ₹11,53,846 |
Key Rules
- 5 years minimum service required (waived for death/disability)
- 6+ months in the last year rounds up to a full year
- Tax exempt up to ₹25 lakh for employees covered under the Act
- Payment within 30 days of becoming payable
- Can be forfeited only for misconduct causing damage
Calculate Yours
🔢 Gratuity Calculator — instant calculation, no login.
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