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Gratuity Calculator for India
Project gratuity liability using the widely taught 15-days-per-year formula. Enter numbers and click Calculate — results appear on this page.
How this Gratuity Calculator works
For eligible employees under the Payment of Gratuity Act, gratuity is often computed as (15/26) × last drawn salary × completed years of service. 'Last drawn salary' typically means basic + DA; partial years may be treated per policy and statute.
How to use
- Enter last drawn salary used for gratuity (basic + DA is common).
- Input completed years of service (round per your policy/statute).
- Review the gratuity estimate from the 15/26 formula.
- Confirm superannuation, forfeiture, and Form I timelines with HR/legal.
Related calculators
Operationalise payroll with IntelloHRM payroll after you finish estimating.
Elementor: insert shortcode [ih_calculator type="gratuity"] or the IH Calculator widget.
Gratuity Calculator — FAQs
When does gratuity become payable?
After five years of continuous service in many cases, with exceptions for death/disablement — verify the Act and your state rules.
Is gratuity taxed in India?
Exemption limits apply under the Income-tax Act for qualifying payments — tax treatment is separate from this arithmetic tool.
Does gratuity include HRA?
Usually last drawn salary means basic + DA, not HRA — but check company policy and legal definitions.
How are partial years counted?
Employers may round up after six months in a year per common practice — confirm your HR policy.
Is gratuity mandatory for all employers?
Coverage depends on establishment type and employee count thresholds under the Act.
Can gratuity be forfeited?
Yes in certain misconduct scenarios per law — this calculator assumes a payable estimate only.
Should startups accrue gratuity monthly?
Finance teams often provision gratuity for P&L; this tool helps sanity-check accrual assumptions.
Does IntelloHRM calculate gratuity on exit?
Configure full-and-final and separation components in IntelloHRM; validate against your policy in a trial run.
What salary to use for variable pay staff?
Use the salary definition in your appointment letter; variable components may be excluded unless policy says otherwise.
How is gratuity different from leave encashment?
Gratuity is a separate statutory/separation benefit; leave encashment uses unused leave balances — use our leave encashment calculator for that math.
After the Gratuity Calculator, run real payroll ops
Estimates help planning — IntelloHRM turns attendance, leave, and payslips into a repeatable process.
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