Gratuity Calculator
Payment of Gratuity Act formula — 15/26 × last drawn × completed years.
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About this calculator
Gratuity is a lump-sum thank-you payment mandated by law for employees leaving after five continuous years — resignation, retirement or retrenchment alike. The 15/26 factor represents half a month's salary for every year worked (a month ≈ 26 working days after weekly offs).
Formula
Frequently Asked Questions
Why divide by 26 and not 30?
The Act counts four paid weekly offs per month, so a month has 26 payable days. Half-month gratuity therefore equals 15/26 of monthly salary.
Do contractual staff qualify?
Employees under the Act need 5 years' continuous service; fixed-term contracts now count proportionally under amendments, but verify with HR/legal.
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