Gratuity Calculator
Gratuity is paid on retirement for each period of service. Government employees and those covered by the Payment of Gratuity Act use different formulas; choose yours and this applies it, with the ceiling.
How to use this calculator
- Enter your last basic pay. Leave DA blank to use the rate in force on your date.
- Enter your years and months of service.
- Choose the government formula or the Payment of Gratuity Act.
- Choose the date, and calculate.
How it is calculated
Emoluments are basic pay plus dearness allowance.
Under the government formula, gratuity is a quarter of emoluments for each completed half-year of qualifying service, up to a maximum number of half-years.
Under the Payment of Gratuity Act, it is 15 days’ wages for each completed year, a month being taken as 26 working days.
Both are capped at the ceiling in force on your date. The government ceiling rose to ₹25 lakh from 1 January 2024, when DA reached 50%; the Payment of Gratuity Act ceiling stayed at ₹20 lakh.
Worked example
A last basic of ₹80,000 on 1 August 2026, with DA at the 60% then in force: emoluments are ₹1,28,000, and 60 completed half-years × a quarter of that is ₹19,20,000 — under the ₹25 lakh ceiling.
Run this worked exampleRelated calculators
- Qualifying Service Calculator for Pension and GratuityLength of service for pension and gratuity, in the six-monthly periods those rules count in.
- Leave Encashment CalculatorPayment for unutilised earned leave at retirement, against the 300-day ceiling.
- Pension Commutation CalculatorThe lump sum for commuting part of your pension, what it costs monthly, and when it is restored.
- Old Pension Scheme CalculatorMonthly pension under the old defined-benefit scheme, pro-rated below full qualifying service.
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