Understand Your Entitlement: Gratuity Calculator

What is Gratuity?

Gratuity is a financial reward paid by an employer to an employee for long-term service. It acts as a token of appreciation, typically given when an employee resigns, retires, or is laid off — provided they’ve completed at least 5 years of continuous employment. In special cases like disability due to accident or illness, gratuity can be paid even earlier.

The Payment of Gratuity Act, 1972 governs how gratuity is calculated and who is eligible. The final amount depends on your last drawn salary and total years of service.

What is a Gratuity Calculator?

A Gratuity Calculator helps you estimate the amount you’ll receive from your employer when you leave a company. It uses a simple formula to calculate your entitlement based on your salary and years of service.

Gratuity Calculation Formula

If covered under the Gratuity Act:

Gratuity = (15 × Last Drawn Salary × Years of Service) / 26

If not covered under the Gratuity Act:

Gratuity = (15 × Last Drawn Salary × Years of Service) / 30

Key Points:

• Maximum Limit: Gratuity payout is capped at ₹20 lakh as per current laws.
• Rounding Rule: If your last year of service exceeds 6 months, it is rounded up to a full year (e.g., 6 years 7 months = 7 years).

How to Use Billinsecond’s Gratuity Calculator

Step 1: Enter your basic monthly salary (and dearness allowance, if any).

Step 2: Select the total number of years you've worked at your company.

Step 3: View the estimated gratuity amount instantly.

Why Use Billinsecond’s Gratuity Calculator?

✔ Financial Clarity: Understand how much gratuity you're entitled to at the end of your service.

✔ Smart Retirement Planning: Plan better for your future with clear, accurate calculations.

✔ Hassle-Free Interface: Easy-to-use sliders and instant results — no complex inputs required.

✔ Ideal for All: Whether you're an employee nearing retirement or exploring benefits, this tool works for everyone.

Don't leave your retirement benefits to guesswork. Use the Billinsecond Gratuity Calculator to see your estimated payout and make confident financial decisions for your future.