EMPLOYMENT BENEFITS
How to Calculate Gratuity Benefits
Compute the gratuity payment amount you are entitled to receive from your employer upon retirement, resignation, or termination.
100% Client-Side calculation for confidential benefit projections
01
Input Last Drawn Salary
Enter your monthly basic salary + dearness allowance (DA) received in your final paycheck.
02
Define Years of Service
Input the total number of continuous years you worked with the current employer.
03
Determine Gratuity Sum
The math engine applies statutory calculations (e.g. 15/26 rule) to forecast your total payout.
Employment Law Formulas
Payout Forecast Tables
100% Private Engine
KEY CAPABILITIES
Employment Benefit Analyzers
Statuity Payout CalculatorsStatutory 15/26 Formula
Employs standard government gratuity computation rules based on a 26-day working month scheme.
Service Period Rounding
Automatically rounds service periods exceeding 6 months up to the next full year, as per legal standards.
Exemptions & Caps
Flags statutory tax-exempt limits and maximum payout caps (e.g. ₹20 Lakh limits) to provide realistic financial numbers.
COMMON QUESTIONS
Frequently Asked Questions
Understand employee gratuity conditions? What is Gratuity?
Gratuity is a lump-sum financial benefit paid by an employer to an employee as a token of appreciation for continuous services rendered.
? Who is eligible to receive gratuity?
Under standard employment laws, any employee who has completed a minimum of 5 years of continuous service with an organization is eligible.
? How is the gratuity amount calculated?
The formula is: Gratuity = (Last Drawn Salary * 15 * Years of Service) / 26, where Salary is Basic + Dearness Allowance (DA).
? Is gratuity calculation rounded for partial years?
Yes. If the fractional service in your final year is 6 months or more, it rounds up to a full year (e.g., 5 years 7 months is counted as 6 years).
? Is gratuity income taxable?
Government employees receive fully tax-exempt gratuity. Private-sector employees enjoy tax exemptions up to statutory limits set by the government.
? Does this calculator record my employment salary?
No. All arithmetic processes run client-side inside your web browser. Your employment record and pay details are never stored.