How to use the Gratuity Calculator
- Enter the last monthly salary your employer uses for gratuity (usually basic).
- Enter your completed years and extra months of service.
- Choose how many days' salary you get per year of service.
- Read your gratuity amount.
How it's calculated
Show the formula
Gratuity = last salary × years counted × (days per year ÷ 30)
A part year of more than six months counts as a full year.
A part year of more than six months counts as a full year.
Gratuity is commonly 30 days' wages for every completed year of service, with any part year over six months counted as a full year, paid on leaving. Private employers often use last basic salary; some use gross salary or fewer days per year, so check your company's gratuity policy.
Worked example
These are the example numbers the calculator opens with. Change any of them above to see your own result.
You enter
| Last monthly salary used for gratuity | Rs 1,20,000 |
|---|---|
| Completed years of service | 7 |
| Extra months | 8 |
| Salary per year of service | 1 month (30 days) |
You get
| Gratuity | Rs 9,60,000 |
|---|---|
| Years counted | 8 (extra 8 months count as a year) |
| Per year of service | Rs 1,20,000 |
| Service | 7 yr 8 mo |
Tips
- Read your appointment letter or HR policy: some companies use gross salary, others basic.
- Companies with a provident fund sometimes don't pay gratuity, or pay less.
Frequently asked questions
How many days of gratuity per year?
Under the Standing Orders it is 30 days' wages for each completed year. Some employers give more, some less under their own approved scheme.
Do I get gratuity if I resign?
Usually yes, once you have completed the minimum service in your company's policy (often one year).
Is gratuity taxable?
Gratuity from an approved fund is often exempt up to a limit; other gratuity can be taxable. Check with a tax advisor.