Gratuity Calculator India

What is Gratuity in India?

Gratuity is a financial perk provided by an employer to an employee in recognition of service rendered. In India, it is governed by the current gratuity rules. Salaried employees are eligible for gratuity upon completing 5 years of continuous service in an organisation with 10 or more employees.

Gratuity Calculation Formulas

For employees covered under the Act: Gratuity = (15 / 26) × Monthly Basic Salary + DA × Completed Years of Service.

For employees NOT covered under the Act: Gratuity = (15 / 30) × Monthly Basic Salary + DA × Completed Years of Service.