Work out gratuity eligibility instantly with clear inputs, formula shown and shareable results.
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.
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
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.
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.
No. It is usually waived where service ends through death or permanent disablement.