Gratuity Calculator in India: Unlock Your Benefits

The Gratuity calculator in India’s actual amount may differ from the calculated amount because the substantial amount may vary.


What is The Gratuity Act 1972?

According to a 1st-time payment, the gratuity in India Act 1972, such a benefit by the employer to an employee. It’s the best thing since sliced bread. The rule is completing 5th years or more of his service is exemplary. If an employee is disabled in an accident or due to disease, they can get a gratuity before completing 5 years. So you can use a gratuity calculator before leaving your job to calculate your gratuity amount. Keep in mind that it totally depends on your last salary and years of service.

What is a gratuity calculator?

One thing to keep in your mind, there’re many ways to calculate the gratuity amount. First, use a gratuity calculator to manage your plan, and spill the beams about your amount. The estimated amount of gratuity is based on the Pune calculator formula.

Gratuity Calculation Formula

According to the Act 1972, the gratuity calculation in India formula is mainly based on 2 types. If you want to know about Gratuity in UAE. These types are given below;

  1. Employees covered under the Act 1972 
  2. Employees not covered under the Act 1972

Employees covered under the Act 1972

The Government employees, special allowance, home allowance, and all organizations with at least 10 employees working on a single day for 12 months would be paid the gratuity amount.

The gratuity calculation formula covered under the

Gratuity calculator in India Formula


b= Last drawn basic salary + dearness allowance

n= number of working years

Explain with Example1

 If you worked in an ABC company for six years under in India Act 1972. your last drawn salary + special allowance is 25000and the number of years of work in the company, suppose 6 years.

Formula= n*b*15/26

n= 6 years

b= 25000



Explain with Example2

 If you have taken 80000 or more from your company for almost 10 years, 

the gratuity you’ll receive is a different formula.

Gratuity Formula= b*[15/26]*10

Expalin= 80000 * [15/26]*10

Answer= 461538

Employees not covered under the Act,1972

 You can receive a gratuity amount even company is not covered under the Act 1972.

 In this situation, the working day has changed to 30 days instead of 26 days

Explain with Example1

 If you have taken 80000 or more from your company for almost 10 years,

 the gratuity you’ll receive is a different formula.

Gratuity Formula= b*[15/30]*10

Expalin= 80000 * [15/30]*10

Answer= 400000

As for understanding see the table below following;

Basic Salary + DANumber of YearsGratuity Amount


You must complete 5 years of service to qualify for the gratuity. However, compensation would be paid for five years of service on death or disablement because of a disease or an accident.

If an individual is on the company rules, he is an employee. He will receive the gratuity as per the rules. But, if he works under a contractor not part of the company, the contractor must pay the dividend.

Yes, the premium paid by a company cannot exceed Rs 20 lakh.

The employer must specify the gratuity amount within 15 days of receiving the application. The gratuity amount is payable within 30 days. If the employer misses the deadline, he must pay the gratuity amount and simple interest incurred.

No, If even the employer is bankrupt, and according to the rule, the company is payable.

Will the Calculators Home gratuity calculator show an accurate figure for the gratuity amount?

Yes, provided you entered the correct inputs. If applicable, you must enter the basic salary, including the special allowance, and you can get the gratuity amount.


As per the above-detailed discussion on the purpose of a gratuity, the calculator has guidance and isn’t on a legal basis. Therefore, the outcome of its calculator has based on the most common employment circumstances in India. Kindly note that the calculator covers only the gratuity part of the final agreement, and aspects such as new leaves salary, notice compensation, air ticket, etc., are not reflected here.