Gratuity & End of Service Calculator

Instant, accurate calculations for India, UAE, and global employees.

Estimated Gratuity Payout
₹ 0
Enter your details above to see your calculation.

How to Calculate Gratuity Amount Accurately

Gratuity is a lump-sum monetary reward provided by an employer to an employee in recognition of their long-term service and loyalty. Whether you are planning your retirement, resigning from your job, or facing a layoff, knowing how to calculate your gratuity amount is crucial for your financial planning. Our free online gratuity calculator removes the guesswork, but understanding the underlying math empowers you to verify your HR department's numbers.

Gratuity Calculation Formula with Example (India)

For employees working in organizations with 10 or more employees, the Payment of Gratuity Act, 1972 applies. The standard gratuity calculation formula with example is straightforward:

Gratuity = (Last Drawn Basic Salary + DA) × (15 / 26) × Years of Service

Example: If your last drawn basic salary plus DA is ₹50,000, and you have worked for 5 years and 7 months, the 7 months round up to a full year (making it 6 eligible years).
Calculation: (50,000 × 15 / 26) × 6 = ₹1,73,076.

Note: A common search query is how to use a gratuity calculator for 4 years and 7 months. Under the Act, since 7 months exceeds the 6-month threshold, it is rounded up to 5 eligible years for the calculation.

End of Service Benefit Calculator UAE Rules

If you are an expatriate working in the Emirates, your payout is governed by the UAE Labour Law. An end of service benefit calculator UAE must account for your contract type and reason for leaving. The daily wage is calculated as your basic salary divided by 30.

Gratuity Calculation on Basic Salary or Gross?

This is one of the most frequent points of confusion. Gratuity is always calculated on your Basic Salary plus Dearness Allowance (DA). It is never calculated on your gross salary. Components like House Rent Allowance (HRA), conveyance, medical allowances, or performance bonuses are strictly excluded from the gratuity formula.

Frequently Asked Questions

Is gratuity taxable in India in 2026?
For government employees, the entire gratuity amount is fully tax-exempt. For private-sector employees covered under the Gratuity Act, the tax-exempt amount is the least of the following: ₹20 Lakhs, the actual gratuity received, or the eligible amount calculated via the formula. Any amount above this limit is taxable.
Can I use this as a severance pay calculator?
Yes. While "gratuity" is the specific term used in India and the UAE, the "General / Other" setting on this tool functions as a basic severance pay calculator, estimating payouts based on a standard one-month-salary-per-year-worked metric common in many Western countries.
What happens if I resign before completing 5 years?
Generally, you must complete 5 continuous years of service to be legally eligible for gratuity. However, exceptions are made in cases of the employee's death, disablement due to accident or disease, or if the company shuts down. In the UAE, partial gratuity may be paid for resignation before 5 years, which our calculator handles automatically.
How do I calculate gratuity for 15 years of service?
Simply enter "15" in the years field and "0" in the months field. The calculator will apply the 15/26 formula for India, or the 30-days-per-year rule for UAE (since it exceeds the 5-year threshold), giving you an instant, accurate estimate.