Calculate your gratuity payable under Payment of Gratuity Act, 1972. For private sector, government and PSU employees. Formula: Basic+DA × 15/26 × years.
Under the Payment of Gratuity Act, 1972, for employees covered under the Act:
The number 15 means "15 days' wages per year of service" and 26 means "working days in a month" (excluding Sundays). Fractions over 6 months round up to a full year.
For employees not covered under the Act (small employers under 10 staff, some contract workers), the formula changes to ÷30 instead of ÷26, and no part-year rounding applies.
The ₹20 lakh limit was raised from ₹10 lakh in March 2018 via the Payment of Gratuity (Amendment) Act, 2018. The limit applies across your entire career — if you've received gratuity from previous employers, subtract that from your ₹20L ceiling.
Gratuity becomes payable when you leave employment after completing 5 years — on retirement, resignation, termination (except for misconduct), or superannuation. For death or disability, payable regardless of tenure.
The employer must pay within 30 days of it becoming due. Delays attract simple interest at the rate notified by central government (currently around 10%).
If disputes arise, you can file a claim under Form N with the Controlling Authority (usually the Assistant Labour Commissioner) in your state.
Gratuity formula mein 15/26 ka factor use hota hai — direct multiplication nahi. Yeh tool exact calculation karta hai aur tax exemption limit (₹20 lakh) bhi bataata hai.
Job change ya retirement ke waqt — employer se kitni gratuity milni chahiye verify karein. Dispute ke case mein accurate calculation kaam aata hai.