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Gratuity calculator

Work out the gratuity payable to a leaving employee under the gratuity law, now part of the Code on Social Security.

Rules checked 17 October 2026. Ceiling ₹20,00,000.

Your figures

Gratuity

15 days’ wages (wages × 15 ÷ 26)
₹23,077
Years countedA part year of more than 6 months counts as a full year
7
Gratuity payable
₹1,61,538

WeHR includes gratuity in full & final settlement and shows the monthly provision in CTC. Try WeHR free.

How it’s calculated

Formula
Last drawn monthly wages × 15 ÷ 26 × years of service. A part year of more than 6 months counts as a full year.
Eligibility
Five years of continuous service for regular employees, one year for fixed-term employees. No minimum on death or disablement.
Ceiling
The amount is capped at the statutory ceiling.
Wages
Basic + DA (+ retaining allowance). Under the Labour Codes, allowances above half of total pay are added back, which often increases gratuity.

Questions

Who is eligible for gratuity?

Employees with at least five years of continuous service, or one year for fixed-term employees, when they leave, retire, or on death or disablement (where no minimum applies).

Why 15 ÷ 26?

Gratuity is 15 days’ wages for each year, and a month is taken as 26 working days, so one year earns wages × 15 ÷ 26.

What is the maximum gratuity?

₹20 lakh, the ceiling notified by the Central Government.

Do this for every employee, every month

WeHR runs these calculations in payroll for your whole team and prepares the PF, ESI and TDS files. Free for up to 5 employees.