Gratuity is a benefit paid by an employer to an employee in recognition of long-term service, generally after completing at least five years of continuous employment. It is regulated under the Payment of Gratuity Act, 1972. In cases of disability caused by an accident or illness, an employee may receive gratuity even before completing five years. The final amount is based on the employee’s last drawn salary and total years of service.
Gratuity Calculator
Estimated Gratuity:
What is Gratuity?
Gratuity is a lump-sum benefit paid by employers for long-term service. The amount depends on your last drawn salary and years of service.
How the Calculation Works
The standard formula is:
Gratuity = (Last Drawn Salary × 15 / 26) × Years of Service
This provides an estimated amount you may receive.