Use this gratuity calculator to estimate the gratuity your employer owes you when you leave a job in India. It applies the rules of the Code on Social Security, 2020, which replaced the Payment of Gratuity Act, 1972 on 21 November 2025, including the new one-year rule for fixed-term employees and the 50% wage rule.
Gratuity calculator
Based on the Code on Social Security, 2020 (in force from 21 November 2025). Indicative only.
How to use the gratuity calculator
- Enter your last drawn basic pay plus dearness allowance per month.
- Optionally enter your total monthly pay (CTC divided by 12). The calculator then checks the 50% wage rule.
- Enter your joining and leaving dates, or your years and months of service.
- Choose your employment type and why your employment ended.
- Click Calculate gratuity to see the amount, the years counted and the formula used.
The formula the calculator uses
Gratuity = Last drawn wages × 15 × Completed years of service ÷ 26
Fifteen days’ wages are paid for each completed year, and 26 is taken as the number of working days in a month. Any part year of more than six months counts as a full year. The result is capped at ₹20 lakh. For the full explanation with worked examples, read our guide on how gratuity is calculated.
Who is eligible
| Situation | Minimum service |
|---|---|
| Permanent or regular employee leaving on resignation, retirement or termination | 5 years of continuous service |
| Fixed-term employee | 1 year of continuous service (pro rata) |
| Death of the employee | None; paid to the nominee or legal heirs |
| Disablement due to accident or disease | None |
What counts as wages
Wages include basic pay, dearness allowance and retaining allowance. HRA, conveyance, overtime and bonus are excluded. But if the excluded components are more than half of your total pay, the excess is added back. For example, with total pay of ₹1,00,000 and basic + DA of ₹35,000, wages for gratuity become ₹50,000. Many salaries with a low basic pay get a higher gratuity under this rule.
Quick examples
| Wages | Service | Gratuity |
|---|---|---|
| ₹40,000 | 10 years | ₹2,30,769 |
| ₹50,000 | 7 years 8 months (counted as 8) | ₹2,30,769 |
| ₹50,000 | 7 years 4 months (counted as 7) | ₹2,01,923 |
| ₹30,000 (fixed-term) | 1 year 9 months (counted as 2) | ₹34,615 |
If your employer does not pay
Gratuity must be paid within 30 days of becoming payable, and delay attracts interest. If your employer refuses or underpays:
- Write to the employer with your calculation and keep proof of delivery.
- Send a legal notice if there is no response.
- Apply to the competent authority with the Delhi Labour Department in your district.
- Claim unpaid salary alongside it; see recovering unpaid salary in Delhi.
A labour lawyer in Delhi can check your wage structure, compute the exact amount and file the claim.
Frequently asked questions
How do I calculate my gratuity?
Enter your last drawn monthly basic pay plus dearness allowance, your joining and leaving dates, and your employment type in the gratuity calculator above. It applies the formula wages × 15 × completed years ÷ 26, rounds a part year above six months up, and caps the result at ₹20 lakh.
Is gratuity calculated on basic salary or CTC?
On wages, which means basic pay, dearness allowance and retaining allowance. But under the Code on Social Security, 2020, if allowances excluded from wages are more than 50% of total pay, the excess is added back. Enter your total monthly pay in the calculator to apply this rule.
Can I get gratuity before 5 years?
Permanent employees generally need 5 years of continuous service. Fixed-term employees qualify after 1 year on a pro-rata basis. No minimum service applies when employment ends because of death or disablement.
Does 6 months count as a full year for gratuity?
A part year of more than six months is counted as a full year. So 7 years 7 months is counted as 8 years, while 7 years 5 months is counted as 7 years.
What is the maximum gratuity I can get?
The statutory ceiling is ₹20 lakh. An employer can pay more under a contract, policy or settlement, but cannot pay less than the amount the law requires.
Is this gratuity calculator result final?
No. It is an estimate based on the details you enter and the general rules. The exact amount depends on your wage structure, service record and any better terms in your contract or company policy.
This calculator gives an estimate for general information. The exact amount depends on your contract, wage structure and service record.
Related guides and services
- How gratuity is calculated: formula and rules
- Recover unpaid salary in Delhi
- Labour Lawyer in Delhi
- Money Recovery Lawyer in Delhi
Written and reviewed by Advocate Shubham Mehta
Advocate, Bar Council of Delhi (Enrl. No. D/6398/2021), and head of SRLM Law Associates. He practises before Rohini Courts, other Delhi District Courts, Family Courts, consumer commissions and the Delhi High Court. More about the firm
Speak to SRLM Law Associates
For advice specific to your situation, you may consult a qualified advocate. Advocate Shubham Mehta (Bar Council of Delhi, Enrl. No. D/6398/2021) and the SRLM Law Associates team can be reached at +91 92052 74745 or [email protected]. Chamber: 1310, Lawyer’s Chamber Block, Rohini Courts, Delhi – 110085. Office: 250, Kayan Vihar, Delhi – 110033. Open daily, 9 am – 9 pm. See our Google reviews and directions.
Last updated: September 2026. This page is for general information only and is not legal advice.