ToolForage.
FINANCE CALCULATOR

Gratuity Calculator

Estimate the 15/26 gratuity formula for regular monthly-rated employment. Enter qualifying wages confirmed by payroll and your completed service.

Calculator

INR
Use the statutory wage amount confirmed by payroll, not CTC or automatically just basic pay.
years
months
Exactly six months does not round up.
days
A day beyond six completed months makes the fraction exceed six months.
INR
₹20 lakh is the standard example ceiling; verify the ceiling or better contractual terms for your case.
YOUR RESULTS
Estimate subject to eligibility330,000.00 INR
Amount before the entered ceiling
330,000.00 INR
Years used in the formula
11 years
Amount above the entered ceiling
0.00 INR
Service-length note
Confirm continuous service and coverage with payroll.

Formula amount and applied ceiling

  • Amount before the entered ceiling330,000.00 INR
  • Estimate subject to eligibility330,000.00 INR

Both amounts are INR estimates. The ceiling does not establish eligibility or the tax treatment.

Understanding your result

The main amount is the formula result limited by your entered ceiling. It is conditional on entitlement. Service rounding for the amount does not prove that the minimum continuous-service requirement has been met.

Check a separate salary-related calculation with the HRA Exemption Calculator .

The formula

Counted years = completed years + 1 if the remaining service exceeds six months. Formula amount = monthly qualifying wages × 15 ÷ 26 × counted years. Estimate = smaller of formula amount and entered ceiling.

Exactly six months is not more than six months. The separate days field handles the boundary without treating six months and one day as six months exactly. The 26-day divisor belongs to the monthly-rated formula supported here.

Worked example

Qualifying wages of ₹52,000 and ten years seven months give eleven counted years. ₹52,000 × 15 ÷ 26 × 11 equals ₹330,000. Ten years exactly six months give ten counted years and ₹300,000 instead.

How to use this calculator

  1. Obtain the monthly qualifying wage amount from payroll under the applicable rules.
  2. Enter completed years, then the additional months and days.
  3. Confirm the relevant ceiling and read the service-length note before using the estimate.

Qualifying wages are not necessarily basic pay

The labour-code changes effective from November 2025 make the applicable definition of wages important. Do not substitute take-home pay, total CTC, or a fixed percentage of CTC without checking the included and excluded components. This tool accepts the verified wage base as an input; it does not classify salary components.

Scope of this estimate

This page covers the regular monthly-rated 15-day formula. Fixed-term, seasonal, piece-rated, government-service, death, and disability cases can need different treatment. Continuous service and any exceptional entitlement require a separate determination. A company agreement may also provide better terms. The amount shown is therefore a planning calculation, not a payroll settlement or a tax-free limit calculation.

Assumptions & limitations

What this calculation assumes

  • You have independently confirmed that the regular monthly-rated formula applies.

What to keep in mind

  • No eligibility adjudication, wage-component classification, tax exemption calculation, or fixed-term pro-rata computation.
  • The editable ceiling must match your case; a contractual benefit can differ from a statutory minimum.

Common questions

Does four years eleven months automatically qualify as five years?

No. Rounding the amount calculation and meeting eligibility are separate questions. This tool flags service below five completed years rather than declaring entitlement.

Can I use monthly CTC as wages?

Not reliably. CTC can include components outside the relevant wage base. Ask payroll for the statutory qualifying monthly wage figure.

Sources & further reading