Gratuity calculator for regular and fixed-term staff

Enter last drawn wages and length of service to work out gratuity under the Code on Social Security, 2020.

Last drawn monthly wages (₹)

Employee type

Years of service

Extra months

Leaving because of death or disablement (the five-year condition does not apply)

Service counted	—
Gratuity	—
If the six-month rounding applied instead	—

An estimate. Wages for gratuity follow the Code's definition, which can be higher than basic pay. Sources do not settle how fixed-term gratuity is rounded, so check your contract and take advice on large amounts.

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How gratuity is calculated

Gratuity = last drawn monthly wages × 15 ÷ 26 × years of service

That is 15 days' wages for each completed year, treating a month as 26 working days. Any part of a year above six months counts as a full year. On wages of ₹20,000 and 7 years 8 months, service counts as 8 years, so gratuity is ₹92,308.

Who qualifies

Regular employees: five years of continuous service.
Fixed-term employees: one year under the contract.
Death or disablement: the five-year condition does not apply.

The gratuity guide explains which wages count, what is still unclear and how contract labour is treated.

Gratuity calculator questions

What is the gratuity formula?

Last drawn monthly wages × 15 ÷ 26 × years of service. Any part of a year above six months counts as a full year.

Is gratuity paid after 4 years 8 months?

A regular employee needs five years of continuous service, unless the employee leaves because of death or disablement. The six-month rounding is used in the calculation, and the five-year condition is a separate test, so take advice if the service is close to five years.

How much gratuity does a fixed-term employee get?

A fixed-term employee qualifies after one year. Sources describe it as pro rata, and do not settle whether the six-month rounding applies, so this calculator shows both figures.

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AiroHR works out the full and final settlement, including gratuity for fixed-term staff, and keeps a gratuity register.

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