Find out exactly how much gratuity an employee is entitled to. Enter years of service, last drawn salary, and get an instant gratuity calculation. Free, no sign-up required.
Add the employee's date of joining, date of separation, and reason for leaving. The calculator determines qualifying years of service automatically.
Input the last drawn monthly basic salary and fixed dearness allowance (if applicable). Select your preferred currency from the dropdown.
Instantly see the gratuity amount, eligibility status, per-year breakdown, and full calculation details. Download a PDF report or copy the result.
Enter dates of joining and separation, basic salary, then click Calculate Gratuity
Gratuity is calculated using the standard formula: Gratuity Amount = (Last Drawn Monthly Basic Salary / 26) x 15 x Number of Years of Service Where: - 26 = Standard working days in a month - 15 = Days of gratuity earned per year of completed service Gratuity Per Year = (Monthly Basic + DA) / 26 x 15 Example: Monthly basic of $3,000 with 7 years of service: ($3,000 / 26) x 15 x 7 = $12,115.38 Rounding Modes: - Round Up (Standard): 6+ months in final year rounds up to the next full year - Round Down (Floor): Only fully completed years count - Exact / Pro-Rated: Fractional months calculated as a decimal
Illustrative gratuity estimates using the standard formula (monthly basic x rounding): - 5 years | $2,000/month basic = ~$5,769 gratuity - 7 years | $2,000/month basic = ~$8,077 gratuity - 10 years | $3,000/month basic = ~$17,308 gratuity - 15 years | $4,000/month basic = ~$34,615 gratuity - 20 years | $5,000/month basic = ~$57,692 gratuity - 25 years | $6,000/month basic = ~$86,538 gratuity Note: Global HR benchmarking data indicates gratuity and end-of-service benefits represent 8%-15% of total employee compensation cost for organisations with tenured workforces.
Gratuity is a lump-sum payment made by an employer to an employee as a reward for sustained service. It is typically paid at the time of retirement, resignation, termination, or death. It is distinct from regular salary or bonus and is calculated based on the employee's last drawn salary and total years of qualifying service. Gratuity is recognised as an employee benefit in employment law and HR policy across many countries globally.