Understanding gratuity calculator
The rounding boundary matters: a service period exactly equal to six additional months differs from one exceeding six months under this method. Enter eligible wages instead of total compensation unless the applicable rule defines them that way. Establish legal eligibility separately before treating the estimate as payable.
Formula and calculation method
For the monthly-rated 15/26 method, gratuity = eligible monthly wages × 15/26 × qualifying years. An additional service period strictly exceeding six months adds one year.
India monthly-rated 15/26 gratuity estimate based on the published formula. Applicable law, employee category, qualifying service, wage definition, exceptions and current ceilings must be confirmed. The cap is user-entered; five-year eligibility and tax exemptions are not determined by this tool.
How to use gratuity calculator
- Set Last drawn monthly eligible wages. The example below uses 40000.
- Set Completed service years. The example below uses 8.
- Set Additional service months. The example below uses 7.
- Set Additional days after entered months. The example below uses 0.
- Set Applicable gratuity cap (0 = uncapped scenario). The example below uses 2000000.
- Select Calculate to update the result. Reset restores the illustrated inputs. Copy, print or download your own result if you need a record.
Worked example
Example inputs
- Last drawn monthly eligible wages
- 40000
- Completed service years
- 8
- Additional service months
- 7
- Additional days after entered months
- 0
- Applicable gratuity cap (0 = uncapped scenario)
- 2000000
- Qualifying years
- 9
- Uncapped gratuity estimate
- 207,692.30769231
- Capped scenario amount
- 207,692.30769231
Factors affecting your result
India monthly-rated 15/26 gratuity estimate based on the published formula. Applicable law, employee category, qualifying service, wage definition, exceptions and current ceilings must be confirmed. The cap is user-entered; five-year eligibility and tax exemptions are not determined by this tool.
Changing last drawn monthly eligible wages changes the scenario being evaluated. Adjust one input at a time when comparing results, keep a copy of the assumptions, and compare values using the same unit and period. A precise arithmetic result does not make an uncertain assumption precise.
Frequently asked questions
How does the gratuity calculator work?
For the monthly-rated 15/26 method, gratuity = eligible monthly wages × 15/26 × qualifying years. An additional service period strictly exceeding six months adds one year.
What inputs does Gratuity Calculator need?
Enter last drawn monthly eligible wages, completed service years, additional service months, additional days after entered months, applicable gratuity cap (0 = uncapped scenario). Choose values that correspond to the same situation and measurement convention.
How should I interpret the gratuity calculator result?
India monthly-rated 15/26 gratuity estimate based on the published formula. Applicable law, employee category, qualifying service, wage definition, exceptions and current ceilings must be confirmed. The cap is user-entered; five-year eligibility and tax exemptions are not determined by this tool.
Are my gratuity calculator inputs uploaded?
No. The calculation runs in this browser. Favorites, recent tool names, theme and formatting preferences may be saved locally, but calculation inputs are not sent to a calculation server or stored by this website. Shared links do not include entered values.
Method reference
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