Gratuity Calculator
Estimate your gratuity amount in India for 2026-27 using your applicable monthly wage base and qualifying service. This tool follows the standard 15-days-per-year method and includes the current fixed-term employee rule.
Enter Your Details
Enter your last drawn Basic Salary + DA and your completed service period.
This calculator is an estimate. The applicable wage definition, employment status, contract terms and statutory rules should be checked for your specific case.
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Enter your details to calculate.
Calculation Details
Salary Details
Service Details
Final Calculation
Gratuity Rules for 2026-27
Gratuity calculations are governed by the current labour-code framework. The Ministry of Labour states that the gratuity provisions under the Code on Social Security, 2020 apply from 21 November 2025.
This page is educational information and an estimation tool. It is not legal, tax or payroll advice. Verify your individual calculation with your employer, payroll team or a qualified professional.
How Gratuity Is Calculated
For a monthly-rated employee covered by the standard gratuity formula, the calculation is based on the last drawn wages and qualifying years of service.
Last Drawn Salary
Enter the monthly wage amount used for the gratuity estimate. The statutory wage base can differ from Basic + DA under the current wage framework.
Calculate Daily Wage
Monthly wages are divided by 26 to arrive at the daily wage for the standard formula.
15 Days' Wages
The daily wage is multiplied by 15 for each qualifying year of service.
Final Amount
The 15-days wage amount is multiplied by the qualifying years of service.
Example: Standard Gratuity Calculation
Suppose the monthly wage used for this estimate is ₹50,000 and the qualifying service is 10 years.
Important Information
2026-27 update: The Code on Social Security, 2020 gratuity provisions apply from 21 November 2025. For a regular employee, the standard five-year continuous-service condition generally applies, subject to statutory exceptions.
For a Fixed-Term Employee directly engaged by the employer, current Ministry of Labour guidance states that gratuity is payable after one year of service under the contract. The five-year condition does not apply in cases of death or disablement.
The wage definition also changed under the current labour-code framework. Allowances and benefits above the applicable 50% threshold can affect the statutory wage used for gratuity. Therefore, entering only Basic + DA may not always produce the statutory wage base.
This calculator is an estimate, not an official government calculator. Your actual gratuity can differ based on employment category, statutory wage definition, contract terms, service records and applicable rules.
Last updated: August 2026 | Applicable framework: Code on Social Security, 2020 and current 2026 Ministry of Labour guidance.
Official references: Ministry of Labour & Employment — Labour Codes / Social Security FAQs; Income Tax Department — AY 2026-27 guidance on gratuity exemption.
Gratuity Calculator FAQ
What is gratuity?
Gratuity is a lump-sum employment benefit payable when the applicable statutory conditions are met. The current gratuity framework is under the Code on Social Security, 2020, effective for gratuity calculations from 21 November 2025.
What is the standard gratuity formula?
For the standard monthly-rated calculation, gratuity is generally based on 15 days' wages for every completed year of service or part of a year exceeding six months, subject to the applicable statutory provisions.
Why is 26 used in the gratuity formula?
For the standard monthly-rated method, 15 days' wages are calculated using the last drawn monthly wage rate divided by 26 and multiplied by 15.
Does 5 years and 7 months count as 6 years?
Under the standard formula, a part of a year exceeding six months is generally treated as an additional completed year. Therefore, 5 years and 7 months would generally be treated as 6 years for this calculation.
Is five years of service always required?
For a regular employee, the standard rule generally requires at least five years of continuous service, subject to statutory exceptions. Current Ministry guidance also states that Fixed-Term Employees can qualify after one year under the contract and that the five-year condition does not apply to death or disablement.
Can a Fixed-Term Employee receive gratuity after one year?
Yes. Current Ministry of Labour guidance states that a Fixed-Term Employee directly engaged by the employer is eligible for gratuity after rendering service under the contract for a period of one year from the start of the contract.
What wage should I enter for the calculator?
Enter the monthly wage amount applicable for your gratuity calculation. Under the current wage framework, the statutory wage base can include an amount added back from allowances when the applicable 50% threshold is exceeded. If you are unsure, verify your salary structure with your employer or payroll team.
Is this an official government calculator?
No. This is an Innosphere estimation tool. Actual gratuity should be verified with your employer and the applicable statutory rules.