Use our free Gratuity Calculator to quickly determine your eligible gratuity amount based on the Indian Payment of Gratuity Act, 1972. Simply input your last drawn basic salary plus DA and years of service to get an accurate estimate. Understand how gratuity is calculated and your eligibility with ease.
Formula:
The gratuity calculation typically follows the formula as per the Indian Payment of Gratuity Act, 1972:
Gratuity Amount = (Last Drawn Basic Salary + DA) × (Number of Years of Service) × 15 / 26
- Last Drawn Basic Salary + DA: This refers to your last drawn basic salary along with your dearness allowance (DA).
- Number of Years of Service: The total number of completed years you have served in the organization. If the service period exceeds six months in the last year, it's rounded up to one full year.
- 15/26: Represents 15 days of wages for every completed year of service, considering a month has 26 working days.