Gratuity Calculator
Gratuity calculator works out Weeks of severance and Severance pay from Years of continuous service, Last drawn monthly wage (basic + dearness allowance) and Days of wages per year of service. The default figures on this page give gratuity of 150,000.00; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
3 steps
- Completed years of service = 10 (a part year over six months counts as a whole year, s.4(2))
- One day's wages = 26000 / 26 = 1000
- Gratuity = 1000 x 15 x 10 = 150000
Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
3 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the gratuity calculator calculates
Works out severance or redundancy pay from years of service and a weeks-per-year entitlement, statutory gratuity under the Payment of Gratuity ACT, pay in lieu of notice with its end date, and the combined termination package.
How to use this gratuity calculator
Enter Years of continuous service, Last drawn monthly wage (basic + dearness allowance), Days of wages per year of service and Working days in a month. Weeks of severance updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Weeks of severance, Severance pay and Gratuity.
The method follows 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, The Payment of Gratuity (Amendment) ACT, 2018 - raises the s.4(3) ceiling on gratuity to twenty lakh rupees with effect from 29 March 2018 and UK Employment Rights ACT 1996 ss.86 and 162 - statutory minimum notice by length of service and the weeks-per-year redundancy formula subject to a capped week’s pay.
What you can compare
Change one input at a time to see how it affects Weeks of severance, Severance pay and Gratuity. The inputs you can vary are Years of continuous service, Last drawn monthly wage (basic + dearness allowance), Days of wages per year of service, Working days in a month and Statutory ceiling on gratuity.
Understanding Weeks of severance, Severance pay and Gratuity
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.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
See something wrong? Report a problem with this calculator
Frequently asked questions
How do I calculate my gratuity?
Works out severance or redundancy pay from years of service and a weeks-per-year entitlement, statutory gratuity under the Payment of Gratuity ACT, pay in lieu of notice with its end date. Open “How this is worked out” beside the result to see each step for your own figures.
Is there a new gratuity calculator available in 2026?
Works out severance or redundancy pay from years of service and a weeks-per-year entitlement, statutory gratuity under the Payment of Gratuity ACT, pay in lieu of notice with its end date. On the figures this page opens with — years of continuous service 10 and last drawn monthly wage (basic + dearness allowance) 26,000 — the gratuity is 150,000. Put your own figures in their place and the working updates beside the result.
How much is a 20% gratuity?
On the figures this page opens with — years of continuous service 10 and last drawn monthly wage (basic + dearness allowance) 26,000 — the gratuity is 150,000. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.
How do AP government employees calculate gratuity?
It needs Years of continuous service, Last drawn monthly wage (basic + dearness allowance), Days of wages per year of service, Working days in a month and Statutory ceiling on gratuity. Nothing else is required, and the figures stay in your browser.
What information do I need for the gratuity calculator?
You need Years of continuous service, Last drawn monthly wage (basic + dearness allowance), Days of wages per year of service, Working days in a month and Statutory ceiling on gratuity. The page opens with default figures that give gratuity of 150,000.00, so you can see the scale before entering your own.
What does this gratuity calculator show?
It shows Weeks of severance, Severance pay, Gratuity, Years credited for gratuity, Pay in lieu of notice, Notice period ends, Accrued leave paid out and Total termination pay, with the working and any warnings for your entries.