Gratuity Inputs
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Gratuity Amount Payable
Compute your end-of-service benefits accurately.
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Gratuity Amount Payable
Gratuity is a monetary benefit given by an employer to an employee as a token of appreciation for long-term service. It is paid upon the employee's termination, retirement, or resignation.
An employee is eligible for gratuity if they have completed a minimum of five continuous years of service with the same employer.
The gratuity is calculated using a specific formula: (Last Drawn Salary x Service Years x 15) / 26. The calculator automatically handles this formula for you.
This refers to the sum of your last drawn Basic Salary and the Dearness Allowance (DA). This is the figure required for the gratuity calculation.
According to the Gratuity Act, if your service period in the final year is six months or more, it is rounded up to a full year for calculation purposes. For example, 7 years and 8 months of service is considered 8 years.