About this gratuity
Estimate gratuity payable to an eligible employee under the common Payment of Gratuity Act formula. It is useful for long-service benefit planning, employee exits, and full-and-final settlement preparation.
How it works
The estimate uses (15 ÷ 26) × last drawn monthly Basic plus eligible DA × completed years of service. Eligibility, rounding of service periods, statutory limits, and treatment for employees outside the Act may differ.
- Step 1Enter last drawn monthly Basic.
- Step 2Enter completed years of service.
- Step 3Review the estimated gratuity amount.
Frequently asked questions
- Is five years of service required?
- Five years is the usual eligibility rule, with specific exceptions such as death or disablement.
- Is HRA included in gratuity salary?
- The common statutory calculation generally uses Basic plus eligible dearness allowance, not HRA.