Tools / Gratuity
Gratuity Calculator
Formula people use is last drawn salary into 15/26 into years. You usually need 5 years. This is a rough figure, not an HR letter.
Result breakdown
- Rough gratuity
- ₹1,61,538
- Formula used
- Last salary × 15/26 × years
- Years used
- 7.0
This is an estimate, not an official figure.
How to use
- Last drawn basic + DA.
- Completed years. Many firms round 6 months up. This box uses the years you type.
One example
Last salary 40,000, 7 years. 40000 × 15/26 × 7 is about ₹1.62 lakh. Confirm with HR because they may use a different month count.
Common mistakes
- Using CTC as last salary.
- Counting 4 years 10 months as 5 without checking company rule.
- Forgetting tax treatment is a separate question.
FAQs
- Is 5 years mandatory?
- For most private jobs under the Act, yes, except some death or disability cases.
- 26 or 30 days?
- This uses 15/26. Some older contracts differ.
- Cap on gratuity?
- Law has a ceiling that moves over years. This box does not apply a cap.
- Government job?
- Their rules are different. Dont use this as final.
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This is an estimate, not an official figure. CalcInHand is not a bank, Income Tax, GST or electricity board tool. Confirm important numbers on the official portal.