Gratuity Calculator: Online Computation With Formula

FAQs

What is the method for calculating gratuity?

The gratuity rule is clearly defined as per the law. Our calculator shared above works on same principal. Rule 1: Gratuity is payable by employer only when employee has served 5 years of uninterrupted service (with some exceptions). Rule 2: The Gratuity is payable only at the time of retirement or relieving from service. Rule 3: Gratuity is one time lumpsum payment. Here is the Gratuity computation or formula:
G = n*b*15/26
Where, G is Gratuity, n = Tenure in company (completed years), b = Your latest basic + DA component. Read more about it here