Calculator
Gratuity calculator
Compute gratuity under the Payment of Gratuity Act, 1972 and the Code on Social Security, 2020. Supports permanent, fixed-term, working journalist and seasonal employees. Results are indicative; verify against the wage definition applicable to your establishment.
Inputs
Provide service and wage details to compute gratuity.
Result
Indicative computation. Subject to your establishment's wage definition.
Enter details to calculate
Provide wages and service, then click Calculate gratuity.
Method and assumptions
Monthly-rated employees: gratuity equals (last drawn wages × 15 × years of service) ÷ 26. Seasonal establishments use 7 days per season instead of 15.
Service rounding: a fraction of more than six months in the final year is treated as one full year. Fixed-term employees under the Code on Social Security, 2020 receive gratuity on a pro-rata basis once one year of service is completed.
Statutory ceiling of ₹20,00,000 applies under Section 4(3) of the 1972 Act and Section 53(2) of the Code on Social Security, 2020.
Wages must include basic, dearness allowance and retaining allowance. The Code's 50% floor rule under Section 2(88) may apply once notified.
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