Gratuity Calculator
Welcome to our Gratuity Calculator! Calculate your gratuity amount based on years of service and last drawn salary.
What is Gratuity?
Gratuity is a statutory benefit provided by employers to employees as a token of appreciation for their services. It is typically paid when an employee leaves the company after completing a certain period of service. The amount is calculated based on the last drawn salary and years of service.
Gratuity Calculation Formula
The formula to calculate gratuity is as follows:
Gratuity = (Last drawn salary × Number of years of service × 15) ÷ 30
Where:
- Last drawn salary refers to the employee's most recent salary including basic salary and dearness allowance.
- Number of years of service is the total years the employee has worked in the organization.
- 15 is the number of days the gratuity is calculated for, as per Indian Labor laws.
- 30 is the total number of days in a month.
How to Use the Gratuity Calculator
To calculate your gratuity amount, you will need to enter your last drawn salary and the number of years you have worked in the company. Simply follow the instructions in the form below:
Gratuity Calculator
Result:
Why is Gratuity Important?
Gratuity is an important benefit for employees as it serves as a financial cushion during retirement or when transitioning to another job. It is a reward for long-term service and a way for employers to express appreciation for the contribution of their employees to the organization.