Free payroll tool
Gratuity calculator for India
Estimate gratuity from last drawn basic plus DA and service period. Helpful for HR teams checking exit settlements, gratuity provisions, or payroll reports.
What the estimate includes
- Last drawn basic salary plus DA
- Completed years and month-based rounding
- Standard 15/26 gratuity formula
- Configurable gratuity ceiling for planning
This calculator is for planning. Check the Payment of Gratuity Act, employee eligibility, company policy, and tax treatment before final settlement.
Estimated gratuity
Service years used
6 years
Six months or more is rounded up for the formula
Uncapped gratuity
₹1,73,077
Basic + DA × 15/26 × service years
Estimated payable gratuity
₹1,73,077
After applying the gratuity ceiling entered above
What this means
Using 6 service years, estimated gratuity is ₹1,73,077 before tax treatment or policy-specific adjustments.
How gratuity is calculated
For most covered employees, gratuity is based on last drawn basic salary plus DA. The standard formula uses 15 days of wages for every completed year of service: basic plus DA × 15/26 × service years.
Service of six months or more after the last completed year is usually rounded up for the formula after the employee meets the service eligibility check. For example, 5 years and 7 months is treated as 6 years for the formula.
What HR teams should check
- Joining date, exit date, and continuous service period.
- Last drawn basic salary plus DA used in payroll.
- Eligibility under the Payment of Gratuity Act and any exception cases.
- Company policy for gratuity provisioning and full-and-final settlement.
- Tax treatment and documentation before payment.
Related payroll calculators
For monthly payroll deductions, use the PF calculator. For wage restructuring checks, use the new wage code salary calculator.
Gratuity calculator FAQs
What is the gratuity formula in India?+
For employees covered by the Payment of Gratuity Act, the common formula is last drawn basic salary plus DA multiplied by 15/26 and then by completed years of service.
Is gratuity payable before five years?+
Gratuity is generally payable after five years of continuous service. Exceptions can apply in cases such as death or disablement, so check the specific situation before making a final decision.
Which salary is used for gratuity calculation?+
The usual wage base is last drawn basic salary plus dearness allowance. HRA, bonus, and most allowances are typically not part of this calculation.
Are months rounded up for gratuity?+
After completed years, service of six months or more is commonly rounded up to the next year for the formula. Less than six months is usually ignored.
Can EasyHR track gratuity liability?+
EasyHR helps HR teams maintain employee records, payroll inputs, join dates, exit data, and reports that make gratuity checks easier during payroll and full-and-final settlement.
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