Gratuity Calculator
Calculate the gratuity payable after 5+ years of service under the Payment of Gratuity Act.
Calculated using the Payment of Gratuity Act formula: (last basic + DA) × 15/26 × years of service.
About the Gratuity Calculator
Gratuity is a lump-sum reward for long service, payable when you leave a job after completing at least five years. The AlarmDaddy Gratuity Calculator computes the amount due under the Payment of Gratuity Act formula, based on your last-drawn basic salary (plus dearness allowance) and your years of service.
Enter your last-drawn monthly basic + DA and your total years of service. The calculator applies the statutory formula and shows the gratuity payable. Gratuity up to ₹20 lakh is tax-free for most employees. The Act rounds service of six months or more up to the next full year, which the calculator handles automatically.
How to use this calculator
- 1Enter your last-drawn monthly basic salary plus dearness allowance.
- 2Enter your total years of service (minimum 5 to be eligible).
- 3Read the gratuity payable.
The formula
The Payment of Gratuity Act uses 15 days of wages for every completed year of service, with a month treated as 26 working days — hence the 15/26 factor. Service of 6 months or more in the final year rounds up to a full year.