Calculate your gratuity as per the Payment of Gratuity Act, 1972. Enter your last drawn salary and years of service to see the amount instantly, with the ₹20 lakh cap and eligibility applied.
Gratuity is a lump sum an employer pays a worker for long service. Under the Payment of Gratuity Act, 1972, it is calculated on your last drawn salary and the number of years you have worked, using a fixed formula.
Gratuity is payable after 5 years of continuous service with the same employer, and is tax-exempt up to ₹20,00,000. On death or disablement, the 5-year rule does not apply.
Gratuity = (last drawn salary × 15 × years of service) ÷ 26, where last drawn salary is basic pay plus dearness allowance and 26 is the number of working days in a month.
After 5 years of continuous service with the same employer. It is also paid on death or disablement, where the 5-year rule does not apply.
The maximum tax-exempt gratuity is ₹20,00,000 (₹20 lakh) under the current rules.
If the final year of service is 6 months or more, it rounds up to a full year. Less than 6 months is ignored.
Yes. Contract and manpower-supplied workers are entitled to gratuity on the same terms once they complete 5 years. For contractors managing hundreds of workers, ZeniaHR tracks eligibility and computes gratuity automatically.
ZeniaHR tracks service, eligibility and final settlement for thousands of contract workers across sites, and computes gratuity, PF, ESI and bonus automatically each month. Built only for manpower and staffing companies.
This calculator is a guide based on the standard Payment of Gratuity Act formula and does not constitute legal or financial advice. Actual gratuity may vary with your establishment's rules and applicable notifications.