Gratuity Calculator
Work out the end-of-service payment your years of service have earned, using your last drawn salary.
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How it works
Gratuity is a lump sum paid on leaving, calculated from your final salary and length of service. The usual shape is a set number of days’ pay for each completed year, though the exact multiplier varies by country and sometimes by length of service.
The defaults here follow the widespread fifteen-days-per-year rule applied to a twenty-six-day working month. Both figures are editable, so the calculator fits whichever formula your jurisdiction or contract uses.
Gratuity = last salary × (days per year ÷ days per month) × years of service
- Last salary — usually basic salary plus any fixed allowance, not total CTC
- Days per year — the entitlement earned for each completed year of service
- Days per month — the divisor for a working month — 26 under the common statutory formula
Worked example
12 years of service on a final salary of 90,000 a month
Inputs
Results
Each completed year is worth about 58% of a month’s salary under this formula. Partial years above six months usually round up.
Frequently asked questions
Which salary figure should I use?
Your last drawn basic salary plus any dearness or fixed allowance, not your full CTC. Using CTC will substantially overstate the entitlement.
How are partial years treated?
Most schemes round a final year of more than six months up to a full year and disregard anything less. Enter the rounded figure — the calculator takes the years you give it at face value.
Is gratuity taxable?
It depends on your country, and often on whether the amount falls under a statutory exemption ceiling. Check the local rule; this calculator reports the gross entitlement before any tax treatment.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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