Gratuity Calculator

Formatting only. This does not change the calculation.
Decimal years are accepted, e.g. 10.5.
Gratuity mode: the wage the Payment of Gratuity Act s.4(2) calculation is based on.
Fifteen under the Payment of Gratuity Act; seven for seasonal establishments.
Twenty-six for employees covered by the Act; thirty is used for uncovered employees.
Twenty lakh rupees under s.4(3) as amended in 2018. Set to 0 for no ceiling.
Gratuity
150,000.00
Severance and Termination Pay Calculator
Years credited for gratuity
10
Total termination pay
150,000.00
Worked out from The Payment of Gratuity Act, 1972 (India), s.4(2) - fifteen days wages for every completed year of service or part in excess of six months, the fifteen days being the last drawn monthly wage divided by twenty-six and multiplied by fifteen and 2 other sources.
What an employer actually owes on termination is set by the law of the jurisdiction, the contract and any collective agreement, and severance is usually taxable. This tool applies the entitlement rule you enter; it is not legal or tax advice and does not determine your entitlement.

How this is worked out

3 steps
  1. Completed years of service = 10 (a part year over six months counts as a whole year, s.4(2))
  2. One day's wages = 26000 / 26 = 1000
  3. Gratuity = 1000 x 15 x 10 = 150000

Results are general information, not financial, tax, legal, medical or engineering advice.