India Gratuity Calculator
Calculate your end-of-service gratuity for India. Free, accurate calculator based on India labor laws.
Calculate Your Gratuity
Excluding HRA, transport, and other allowances
Include if part of your salary structure
About India Gratuity
India gratuity calculation is based on local labor laws and regulations.
Calculation Formula
(Basic + DA) × 15 × Years ÷ 26
Minimum service required: 5 years
India gratuity calculation based on Payment of Gratuity Act, 1972.
What is Gratuity in India?
Gratuity in India is a statutory benefit paid by employers to employees under the Payment of Gratuity Act, 1972.
It applies to establishments with 10 or more employees, including factories, mines, oilfields, plantations, ports, railways, and shops.
Gratuity is calculated based on Basic Salary plus Dearness Allowance (DA) and requires minimum 5 years of continuous service.
India Gratuity Calculation Formula
Formula
(Basic + DA) × 15 × Years of service ÷ 26
- Last drawn salary = Basic Salary + Dearness Allowance
- Service of 6+ months in a year counts as a full year
- Minimum 5 years of continuous service required
- Maximum payout capped at ₹20 lakh (updated limit)
Minimum service: 5 years
Gratuity Calculation Examples
Example: 6 Years Service
Basic Salary: ₹ 50,000/month
Years of Service: 6 years
Calculation:
Gratuity = (50,000 × 15 × 6) ÷ 26 = ₹173,077
Tips & Best Practices
📋 Keep Records
Maintain copies of employment contract, salary slips showing Basic + DA, and service certificates.
💰 Include Dearness Allowance
India gratuity includes Basic + DA. Make sure to include DA in your calculation.
⏰ 5 Year Requirement
Minimum 5 years of service is required. Service of 6+ months counts as full year.
✅ Verify with HR
Always verify the final amount with your HR department or employer.