Free Tool · Payment of Gratuity Act, 1972
Calculate the gratuity you are owed on resignation, retirement, or termination under India’s Payment of Gratuity Act, 1972. Enter your salary and years of service below for an instant, accurate estimate, free.
Gratuity is a lump-sum payment your employer is legally required to pay you as a token of appreciation for your service, when you leave the organisation after completing a minimum period of continuous service. It is governed by the Payment of Gratuity Act, 1972, and applies to employees of factories, mines, oilfields, plantations, ports, railway companies, shops, and establishments with 10 or more employees.
You become eligible for gratuity after completing 5 years of continuous service with the same employer, whether you resign, retire, or are terminated (for reasons other than misconduct involving moral turpitude). The 5-year minimum does not apply if you leave due to death or permanent disablement, in which case gratuity is payable regardless of tenure.
Gratuity is calculated on your last drawn salary (Basic pay plus Dearness Allowance) and your total years of service. Many employees never check whether they received the correct amount, and gratuity is frequently underpaid or delayed. Use the calculator below to check your exact entitlement in seconds.
Calculate the gratuity you are owed on resignation, retirement, or termination, based on the Payment of Gratuity Act, 1972. Instant, accurate, and free.
Use decimals for months, e.g. 7 years 6 months = 7.5
The calculation depends on whether your employer is “covered” under the Payment of Gratuity Act (most employers with 10 or more employees are).
The “26” represents the assumed number of working days in a month. Your last drawn salary means Basic pay plus Dearness Allowance (DA), not your full CTC.
Here, gratuity is paid as per your employment contract or company policy rather than as a statutory right, and the calculation typically uses 30 days instead of 26.
If your service in the final year exceeds 6 months, it is rounded up to the next full year. For example, 7 years and 7 months counts as 8 years; 7 years and 4 months counts as 7 years.
The tax-exempt ceiling on gratuity is currently ₹20,00,000 (Payment of Gratuity (Amendment) Act, 2018). Amounts above this may still be payable as per your contract, but may not be fully tax-exempt.
Gratuity is a statutory right, not a discretionary benefit. If you are eligible and your employer delays, underpays, or refuses to pay your gratuity, you have legal recourse.
An employer must pay gratuity within 30 days of it becoming due. If they fail to, they are liable to pay interest on the delayed amount. You can file a claim with the Controlling Authority under the Act (usually an official appointed by the state government), and in cases of continued non-payment, further legal action can follow.
Common reasons gratuity is wrongly denied include employers misclassifying an employee’s tenure, disputing whether the establishment is “covered,” or attempting to offset gratuity against alleged dues. None of these are automatically valid grounds to withhold a legitimate claim. If your employer is not paying what this calculator shows you are owed, a lawyer can help you send a formal demand and, if needed, pursue your claim.
Our lawyers help employees recover unpaid or underpaid gratuity, from a formal demand notice to representation before the Controlling Authority. Clear fixed fee, confirmed upfront.
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Reviewed by Prakhar Rai, an advocate enrolled with the Bar Council of India and the founder of My Legal Pal. An alumnus of the National Law School of India University (NLSIU), Bangalore, with a Master of Business Laws, Prakhar and the My Legal Pal team advise employees and employers on gratuity, employment contracts, and workplace disputes.
This tool is informational only and does not constitute legal or tax advice. Reviewed by Prakhar Rai, Advocate (Bar Council of India). Last updated: August 2026.
