How Gratuity Calculator Works 

Let’s be honest — gratuity is one of those things everyone has heard about, but very few people truly understand.
You know you’ll get it when you leave your job… but how much? When? How is it calculated? Why is the formula so weird?

Don’t worry — you’re not alone.
Most people search Google at the last moment, trying to figure out “How much gratuity will I get?”
That’s exactly why this calculator exists. To give you clear answers without stress.

Let me explain this in the simplest, most human way possible—just like a friend sitting beside you and breaking it down calmly.

What Is Gratuity, Really?

Think of gratuity as your employer’s way of saying:

“Thank you for sticking with us through all those years.”

It’s a reward for your loyalty.
A small financial hug when you leave the company after years of hard work.

You usually receive it when:

• You resign after working for 5+ years
• You retire
• You’re laid off
• Or in rare difficult situations like death or disability

So yes, gratuity is meaningful — it’s money you’ve earned over years of your life.

The Only Three Things You Need to Know

This calculator doesn’t ask for your whole salary slip or your CTC.
It only needs three simple things:

1. Your Last Drawn Salary

Not your entire salary — just Basic + DA.
This is what the law uses.

2. How long you’ve worked

Enter the completed years and months of service.

Here’s the nice part:

If you worked 6 or more months, it becomes a full year.

So:

• 7 years 8 months → 8 years
• 4 years 2 months → 4 years

This small detail increases your gratuity by a lot, and many people don’t know it.

3. Whether your company is covered under the Gratuity Act

Most Indian companies are.
Some aren’t.
The formula changes slightly — that’s all.

You don’t need to worry much about this.
Just choose the option your HR told you, or leave the default as it is.

A Real-Life Example

Let’s imagine someone like you — let’s call him Arjun.

Arjun worked at his company for 7 years and 7 months.
His last drawn Basic + DA was ₹30,000.
His employer is covered under the Gratuity Act.

Now here’s what happens:

 Step 1: Convert years + months

7 years + 7 months → 7 months is more than 6 → becomes 8 years

Step 2: Apply formula

Since the employer is covered under the Act:

Gratuity = (15 × Salary × Years) ÷ 26

Let’s plug in the numbers:

• 15 × ₹30,000 = ₹4,50,000
• ₹4,50,000 × 8 = ₹36,00,000
• ₹36,00,000 ÷ 26 ≈ ₹1,38,461.54

Arjun’s final gratuity = ₹1,38,461.54

That’s the amount waiting for him when he leaves the company.

And that’s exactly the kind of clarity this calculator gives you.

Why People Love This Calculator

Because it feels simple, clear, and honest.
No complicated numbers.
No legal jargon.
No confusion about formulas.

Here’s what users usually say:

• “Oh wow, this is easier than I thought.”
• “Now I know what to expect when I resign.”
• “I wish I knew this earlier.”
• “At least now I can plan my savings better.”

That’s the whole purpose — to help you understand your own money without feeling overwhelmed.

Final Thoughts

Gratuity is more than just a calculation — it’s the value of your years, your loyalty, and your effort. You deserve to know it clearly.

This calculator makes it quick and effortless.
Just enter your salary and service years, click calculate, and you instantly see your expected gratuity.No stress.
No maths.
Just clarity.