NNeevHR
Free HR tools

Gratuity calculator

Estimate the gratuity payable under the Payment of Gratuity Act, 1972.

Gratuity payable

₹2,42,308

Formula15 × salary × years ÷ 26
Computed₹2,42,308
Payable₹2,42,308

Based on the Payment of Gratuity Act, 1972 (covered establishments). The maximum is ₹20,00,000. Indicative only.

How gratuity is calculated

For establishments covered by the Payment of Gratuity Act, 1972, gratuity is 15 × last drawn salary × years of service ÷ 26, where salary means Basic + Dearness Allowance. An employee is generally eligible after 5 years of continuous service, and any part of a year of 6 months or more counts as a full year. The maximum gratuity payable is ₹20,00,000. Figures here are indicative.

NeevHR does this for your whole payroll, automatically

Gratuity, HRA, PF and TDS computed every cycle, statutory-accurate.

Book a demo