Gratuity Calculator
Calculate your gratuity amount as per Indian gratuity rules (Payment of Gratuity Act, 1972).
About the Gratuity Calculator Tool
Planning for the future is essential, and understanding your rightful benefits at the end of employment is a key part of that journey. The Gratuity Calculator Tool is a free, easy-to-use, and reliable online tool designed to help Indian employees estimate their gratuity amount as per the Payment of Gratuity Act, 1972.
Whether you're retiring or switching jobs after several years of dedicated service, this tool offers a quick and transparent way to calculate your gratuity payout based on your last drawn salary and years of service. No complicated formulas or manual effort required!
What is Gratuity?
Gratuity is a monetary benefit given by an employer to an employee for rendering continuous service for five or more years. It is essentially a token of appreciation for your loyalty and long-term contribution to an organisation. In India, this payment is regulated under the Payment of Gratuity Act, and it is usually provided at the time of retirement, resignation, or death.
How Does the Gratuity Calculator Work?
Our tool uses the standard formula:
Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26
Here's how you can use it:
- Step 1: Enter your last drawn basic salary plus dearness allowance (DA).
- Step 2: Fill in the number of years and months you've worked in the organisation.
- Step 3: Click on “Calculate Gratuity” to instantly view your estimated gratuity amount.
Who Can Use This Tool?
This calculator is ideal for:
- Private sector employees covered under the Gratuity Act.
- Government employees.
- HR professionals and financial planners.
- Retiring or resigning employees wanting to estimate benefits.
Why Use Our Gratuity Calculator?
- 100% Free and Instant: No sign-up required. Get your result instantly.
- Mobile-Friendly: Works smoothly on all screen sizes including phones and tablets.
- Accurate Estimates: Based on the latest gratuity norms under Indian law.
- Secure and Lightweight: No data is stored or shared. Your information is safe.
- Stylish and Easy Interface: Clean design for a seamless experience.
Practical Implications
Understanding your gratuity helps in effective financial planning, especially before retirement or job transition. It also ensures you are aware of your legal entitlements and not short-changed during exit settlements. With this tool, you’re empowered with clear, transparent calculations that eliminate guesswork and confusion.
Disclaimer
This tool is for informational purposes only and provides an estimate based on the standard formula under the Payment of Gratuity Act. Actual gratuity may vary based on employer policies, bonuses, and other benefits.
We Value Your Feedback
Found this tool helpful? Let us know what you think, or suggest improvements so we can make it even better for you. Your experience matters to us!
