India Gratuity Calculator
Work out your gratuity under India's Code on Social Security, 2020, which replaced the Payment of Gratuity Act on 21 November 2025. Enter your dates and pay. The calculator applies the 15/26 formula, the 50% wage rule, the service rounding and the ₹20 lakh ceiling.
Estimated gratuity
Enter a start date and a last working day after it.
An estimate based on India's Code on Social Security, 2020, as checked in October 2026. Your contract, employer or a court may apply different terms. This isn't legal advice.
Employers: run payroll and compliance with our HR & Payroll SystemHow the rules work in India
- Formula
- Last drawn wages × 15 × years of service ÷ 26.
- Wages
- Basic pay plus dearness allowance (DA). If allowances make up more than half of your total pay, the excess counts as wages, so wages are at least 50% of your pay.
- Years counted
- Each completed year counts, and a remaining part of more than six months counts as a full year.
- Eligibility
- Five years of continuous service for permanent employees; one year for fixed-term employees; no minimum on death or disablement.
- Ceiling
- ₹20 lakh (₹20,00,000).
- Who it covers
- Establishments with ten or more employees.
Rules last checked October 2026. For official guidance, see the Ministry of Labour and Employment. This calculator gives an estimate and isn't legal advice.
Frequently asked questions
How is gratuity calculated in India?
Multiply your last drawn wages (basic + DA) by 15 and by your years of service, then divide by 26. A remaining part year of more than six months counts as a full year. For example, ₹50,000 for 10 years and 7 months counts as 11 years: 50,000 × 15 × 11 ÷ 26 = ₹3,17,307.69.
What changed under the new Labour Codes?
The formula and the ₹20 lakh ceiling stayed the same. What changed is that wages must now be at least half of your total pay, which raises gratuity for people with a low basic salary, and that fixed-term employees qualify after one year instead of five.
Do I get gratuity if I leave before five years?
Permanent employees normally need five years of continuous service. Fixed-term employees qualify after one year, and there's no minimum if gratuity is paid on death or disablement. Some courts have treated just under five years as qualifying in particular cases, so take advice if you're close.
Is there a maximum gratuity amount?
Yes. Gratuity is capped at ₹20 lakh.
When must my employer pay gratuity?
Within 30 days of it becoming payable. Late payment attracts interest.
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