Gratuity Calculator
Easily calculate the gratuity amount payable to an employee as per the Payment of Gratuity Act.
Calculate Your Gratuity
What is Gratuity?
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for their long-term service. It is a mandatory benefit for employees who have completed at least five years of continuous service with an organization.
Gratuity Calculation Formula
The formula used for calculating gratuity for employees covered under the Payment of Gratuity Act is:
Gratuity = (Last Drawn Salary × Number of Years of Service × 15) / 26