Gratuity Calculator – Estimate Your Payout
Estimate gratuity under the 15/26 formula and check the 5-year vesting rule
Employment Details
Payout
Estimated Gratuity
$369,231
Monthly Basic + DA
$80,000
Service Years
8
Formula: basic + DA × 15/26 × years of service
About this Tool
Gratuity is a lump-sum farewell benefit employers pay for long service, computed as last-drawn basic plus DA times 15/26 times completed years. The 15/26 factor treats a month as 26 working days with 15 days of wages per year. This calculator applies the formula and flags whether the 5-year vesting rule is met.
Common Use Cases
Resignation Planning
Estimate the payout before quitting so you can time your exit and budget the gap.
Retirement Corpus
Add expected gratuity to PF and savings when sizing your retirement fund.
Job-Switch Comparison
Weigh gratuity left on the table against a higher offer elsewhere.
HR Verification
Cross-check the figure on your full-and-final settlement statement.
Pro Tips
- !
Complete 5 Years
Under 5 years, gratuity is forfeited on resignation — only death or disablement waives vesting.
- !
Know the Rounding Rule
Service over 6 months in the final year counts as a full year, boosting the payout.
- !
Basic Matters, Not CTC
Only basic plus DA count — allowances and bonuses are excluded from the formula.
Examples
80,000 basic plus DA with 8 years of service
An 80,000 last-drawn basic plus DA with 8 years of service pays gratuity of 3,69,231.
- Formula = monthly basic plus DA x 15/26 x years = 80,000 x 15 x 8 / 26.
- 80,000 x 15 = 12,00,000; 12,00,000 x 8 = 96,00,000; 96,00,000 / 26 = 3,69,230.77, shown as 3,69,231 rounded.
- 8 years clears the 5-year vesting rule, so the full amount is payable on resignation or retirement.
50,000 basic plus DA with 5 years of service
A 50,000 basic plus DA at exactly the 5-year vesting mark pays gratuity of 1,44,231.
- Formula = 50,000 x 15 x 5 / 26 = 37,50,000 / 26 = 1,44,230.77, shown as 1,44,231 rounded.
- Each extra year at this salary is worth 50,000 x 15/26 = 28,846.15, so year 6 would add exactly that.
- Below 5 years the same math gives a figure but it is forfeited on resignation — only death or disablement waives vesting.
FAQs
Was this calculator helpful?