How to use the gratuity calculator
- Enter your basic salary plus dearness allowance for the month.
- Enter your completed years of service.
- Read the gratuity payable, the salary used and your eligibility.
The 15-day formula
Gratuity equals (15 / 26) x monthly salary x completed years. The 26 represents the working days in a month. Only the last drawn basic salary plus DA count - not your full CTC.
A worked example
A monthly basic plus DA of Rs50,000 and 10 completed years gives gratuity of Rs2,88,461 (15 / 26 x 50,000 x 10). The benefit is tax-free up to the statutory limit when the five-year condition is met.
Five-year rule
You generally need five years of continuous service to qualify. This calculator shows the amount regardless, but flags eligibility so you know whether the law pays it out.