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MoneyVerdict

What will your gratuity actually be?

The formula is fixed by law — (15 × last-drawn Basic+DA × years of service) ÷ 26 — but eligibility rules changed for fixed-term employees in 2026. Check both below.

Your service
₹/month

Enter your last drawn Basic+DA and years of service to see your estimate.

Questions people actually ask

Why 26 and not 30 days?
The Payment of Gratuity Act specifically uses 26 working days per month (accounting for weekly offs), not the 30-day convention used elsewhere for things like notice-period buyout.
Is gratuity paid on Basic salary or full CTC?
Only Basic + Dearness Allowance (DA) — never on HRA, allowances, or variable pay, regardless of how large those components are in your CTC.
What changed for fixed-term employees in 2026?
Under the new Labour Codes, fixed-term/contract employees now qualify for gratuity after just 1 year of continuous service, instead of the 5 years required for permanent employees. Many older calculators and articles haven't caught up to this yet.