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Gratuity Eligibility Calculator

Work out gratuity eligibility instantly with clear inputs, formula shown and shareable results.

About Gratuity Eligibility Calculator

Statutory gratuity is fifteen days' wages for each completed year of service, computed as last drawn monthly pay times 15 divided by 26, with a part-year of six months or more counted as a full year. Eligibility normally requires five years of continuous service, and the total is capped.

Formulas

Counted years

Counted years = Completed years + 1 if the final part-year is six months or more

Gratuity

Gratuity = Last drawn monthly pay x 15 / 26 x Counted years, capped at the statutory maximum

Worked example

With the default values below, Gratuity Eligibility Calculator returns Gratuity payable of $470,769.23. Change any input above and every figure here is recalculated in your browser.

Inputs used

Last drawn basic salary plus dearness allowance
68,000
Completed years of service
11
Additional months in the final year
7
Statutory gratuity cap
2,000,000

Results

Gratuity payable
$470,769.23
Counted years of service
12
Headroom below the statutory cap
$1,529,230.77
Eligibility
Eligible — five or more counted years

Step by step

  1. 1Values used
  2. 2Counted years
  3. 3Gratuity
  4. 4Gratuity payable= 470,769.23
  5. 5Counted years of service= 12
  6. 6Headroom below the statutory cap= 1,529,230.77
  7. 7Eligibility= Eligible — five or more counted years

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why divide by 26?

Because the formula treats a month as 26 working days, excluding four weekly rest days. That is what makes fifteen days' wages equal 15/26 of monthly pay.

Is the five-year rule absolute?

No. It is usually waived where service ends through death or permanent disablement.

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