Gratuity formula
Under the Payment of Gratuity Act, 1972, an employer with 10 or more employees pays 15 days' salary for every year of service, with a month taken as 26 working days: Gratuity = 15 × last drawn salary × years ÷ 26. Salary means basic pay plus dearness allowance. More than 6 months in the final year counts as a full year.
For employers not covered by the Act, a month is taken as 30 days and only completed years count. Gratuity is usually payable after 5 years of continuous service, and is capped at ₹20 lakh under the Act.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer.