Do I get anything before five years?

Not in the ordinary case. The five-year condition is waived only where service ends because of death or disablement.

What does the fifteen over twenty-six mean?

Fifteen days of pay for each year of service, with a month treated as twenty-six working days. Employers outside the Act use thirty instead, which yields a smaller amount for identical service.

How is a part-year treated?

Under the Act, six months or more rounds up to a full year. Outside it, only completed years count. The difference is a whole month of pay for someone leaving just past a half-year.

It is exempt up to the statutory ceiling for non-government employees, and anything above that is taxable as salary. The tool shows both the uncapped and the capped figures so you can see which applies.

Gratuity Calculator

What is due after five years, and how the statutory cap bites.

Everything runs inside your browser. Your files never leave your device.

Result

The result appears here as you type.

Ask about Gratuity Calculator

Questions about what this tool does, which option to pick, or what it can and cannot handle.

The question you type here is sent to an AI provider to be answered — your files and whatever you put in the tool above are not, and the assistant cannot see them. Answers are generated and can be wrong. The tool itself is not guessing: it runs deterministic code on your device.

About the Gratuity Calculator

Gratuity is a lump sum an employer pays for long service, and it becomes payable after five continuous years — except where service ends in death or disablement, when the five-year condition falls away. Before that threshold there is simply nothing to compute, and the tool says so rather than returning a figure you cannot claim.

The formula depends on whether the employer is covered by the Payment of Gratuity Act. Under the Act it is fifteen twenty-sixths of the last drawn monthly basic and dearness allowance, multiplied by the years served, on the reasoning that a month contains twenty-six working days. Outside the Act the divisor is thirty rather than twenty-six, which produces a smaller amount for the same service.

Rounding is the other difference and it is worth more than it sounds. Under the Act a part-year of six months or more counts as a whole year; outside it, only completed years count. Someone leaving after ten years and seven months is credited with eleven years under the Act and ten outside it, and the gap is a full month of pay.

A statutory ceiling caps the amount that is exempt from tax for employees outside government service. The tool shows the raw calculation and the capped figure separately, so you can see whether the ceiling is binding — for long service at a senior salary it frequently is, and anything above it is taxable as salary.

The salary to use is the last drawn basic plus dearness allowance, not gross pay and not CTC.

How to use it

1Enter your last drawn monthly basic plus dearness allowance.
2Enter your total service in years, decimals included — the part-year matters.
3Set whether the employer is covered by the Act; it changes both the formula and the rounding.
4Check whether the statutory cap is binding on your figure.

Questions

Do I get anything before five years?: Not in the ordinary case. The five-year condition is waived only where service ends because of death or disablement.
What does the fifteen over twenty-six mean?: Fifteen days of pay for each year of service, with a month treated as twenty-six working days. Employers outside the Act use thirty instead, which yields a smaller amount for identical service.
How is a part-year treated?: Under the Act, six months or more rounds up to a full year. Outside it, only completed years count. The difference is a whole month of pay for someone leaving just past a half-year.
Is gratuity taxable?: It is exempt up to the statutory ceiling for non-government employees, and anything above that is taxable as salary. The tool shows both the uncapped and the capped figures so you can see which applies.