Gratuity Calculator
Calculate End of Service Benefits Online Instantly
Gratuity Amount: 0.00
Enter your salary and years of service to calculate.
Gratuity Calculation Formula
Daily Salary = Monthly Salary ÷ 30
For gratuity calculation:
- First 5 years of service = 21 days salary for each year.
- More than 5 years = 30 days salary for each additional year.
Formula:
If Service ≤ 5 Years Gratuity = (Salary ÷ 30) × 21 × Years If Service > 5 Years Gratuity = (Salary ÷ 30 × 21 × 5) + (Salary ÷ 30 × 30 × Remaining Years)
Gratuity Rules
- Employees typically become eligible after completing the minimum required service period.
- The gratuity amount is usually based on the last drawn basic salary.
- First five years are commonly calculated at 21 days per year.
- Years beyond five are commonly calculated at 30 days per year.
- Labor laws may differ by country and employment contract.
- Always verify calculations with your local employment regulations.
Example Calculation
Basic Salary: 5,000
Years of Service: 7 Years
Daily Salary = 5000 ÷ 30 = 166.67
First 5 Years = 166.67 × 21 × 5 = 17,500
Remaining 2 Years = 166.67 × 30 × 2 = 10,000
Total Gratuity = 27,500
Frequently Asked Questions (FAQ)
What is gratuity?
Gratuity is an end-of-service benefit paid to employees after completing a specified period of employment.
How is gratuity calculated?
It is usually calculated from the employee’s basic salary and total years of service.
Does every employee receive gratuity?
Eligibility depends on labor laws, employment contracts, and service length requirements.
