Gratuity Calculator
Estimate gratuity based on last drawn salary and years of service
Note: Regional laws vary widely. This calculator uses a common heuristic (15/26 × last salary × years) for education only.
How to Use This Calculator
Enter last drawn basic
Monthly basic pay used for gratuity calculation.
Enter years of service
Round down partial years as per your policy, if applicable.
Set formula parameters
Adjust gratuity rate (days) and days-per-month factor for your jurisdiction.
Calculate
View the estimated gratuity and refine inputs as needed.
Formula
Gratuity ≈ (RateDays / DaysPerMonth) × LastBasic × Years
About Gratuity Calculator
The Gratuity Calculator provides an educational estimate of end-of-service benefits using a commonly referenced formula in certain jurisdictions: 15 days of basic pay for each completed year of service, with pay-days normalized by a 26-day month (15/26). In practice, eligibility criteria, rounding rules for partial years, caps, and the definition of “basic pay” differ by country and employment contract. Some regions mandate statutory gratuity under labor laws, while others do not. Employers may also offer enhanced benefits beyond statutory minimums. Because of these differences, use this tool to understand the mechanics rather than as a definitive payout calculation. Set the gratuity rate (in days) and the days-per-month factor to match your local rules. The result helps with planning, comparing offers, and discussing benefits with HR, but always review your contract and local regulations or consult a professional for precise entitlements.
Frequently Asked Questions
Is gratuity mandatory?
Depends on jurisdiction and tenure. Check your local labor laws and contract.
What is “basic pay”?
Typically base salary excluding allowances/bonuses, but definitions vary by policy and law.
How are partial years handled?
Some rules round to completed years; others pro-rate. Adjust inputs accordingly.