What is gratuity?
Gratuity is a lump sum your employer pays when you leave after long service: usually after 5 years, or after 1 year for fixed-term employees under the new labour codes. It equals 15 days' salary for each year of service, based on your last basic pay plus DA.
Ready answers
How to use this calculator
- Enter your last monthly basic + DA.
- Enter your years and extra months of service.
- Say whether your employer is covered by the Gratuity Act (10 or more employees).
Formula
Gratuity = Last basic + DA × 15 ÷ 26 × years of service
Rules and rates checked against: Ministry of Labour and Employment, Income Tax Department. Last checked 6 November 2026. How we calculate.
Read more: Gratuity rules. New to these words? See the money glossary.
Common questions
How much gratuity for 10 years with ₹50,000 basic?
About ₹2.88 lakh (₹50,000 × 15 ÷ 26 × 10). With 10 years and 7 months, it counts as 11 years: about ₹3.17 lakh.
After how many years do I get gratuity?
Usually after 5 years of continuous service. Under the new labour codes, fixed-term employees can get it after 1 year.
Does the new 50% wages rule change my gratuity?
It can. Under the new labour codes (from 21 November 2025), basic + DA must be at least half of your total pay; if your allowances are more than half, the extra is added back to "wages" for gratuity. If that applies to you, enter the higher wages figure in the calculator.
Gratuity kaise calculate kare?
Aakhri basic + DA × 15 ÷ 26 × naukri ke saal. 6 mahine se zyada ka hissa poora saal gina jata hai.