What this gratuity calculator estimates
This tool illustrates a salary-and-service formula for regular private-sector employment. It does not decide whether you are legally entitled to gratuity, determine the correct wage basis for your employment, or calculate your personal tax exemption. Check the Labour Ministry and Income Tax Department references above before relying on an estimate.
The 15/26 formula
The statutory-formula option uses fifteen days of the eligible monthly wage for each year counted, with a twenty-six-day divisor. Service beyond six additional months rounds up in this illustration. The alternative option uses half a month per completed year without rounding.
Estimate = monthly wage basis entered × 15 / 26 × years counted
Worked example: an eligible monthly wage basis of ₹50,000 and ten years gives 50,000 × 15 / 26 × 10, or approximately ₹2,88,462 before any applicable cap. The result breakdown shows the wage per counted year and the formula amount.
Use the correct wage basis
Do not enter full CTC. The applicable wage definition can include adjustments beyond Basic and dearness allowance under the current labour codes. This calculator does not reconstruct eligible wages from a full salary structure. Ask your employer to confirm the wage basis.
Eligibility, the cap and tax are separate questions
The tool uses a regular-service threshold and a configured private-sector cap. Fixed-term employment, death or disability, government service and other special cases can have different rules. Falling below the displayed service threshold does not establish that every category of employee is ineligible.
A formula amount is not automatically your tax-free entitlement. The exemption can depend on your employment category, the amount received and exemptions claimed earlier. This tool does not perform that assessment. The income-tax calculatoralso provides a salary estimate rather than a complete tax-return calculation.
Why gratuity appears in CTC
Employers can include a provision for gratuity in CTC. The take-home salary calculator treats that provision separately from cash salary. A provision is not a promise that the same amount is payable on every exit; actual entitlement depends on the applicable rules and your circumstances.
Using the half-month illustration
The alternative mode changes only the arithmetic to half a month of the entered wage basis for each completed year. Confirm whether an average salary or another basis is required for your circumstances. Selecting this mode does not establish statutory coverage or tax exemption.