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.
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.