THE DOOD TOOLBOX / PAYROLL
Gratuity calculator: a formula estimate
Explore the 15/26 calculation for a monthly-rated employee using a reviewed wage basis and service period. Eligibility and applicable limits need a separate check.
FORMULA RESULT · BEFORE LIMITS
₹1,44,230.77
5 counted years × ₹50,000 × 15 ÷ 26.
This is not an eligibility decision or a final payable amount. No statutory or contractual cap, tax exemption or special employment treatment is applied.
How this calculation works
The monthly-rated formula uses last-drawn wages × 15 ÷ 26 × counted years. For this general illustration, additional service exceeding six months adds one counted year; exactly six months does not. Enter a wage basis reviewed for your circumstances, not automatically your CTC or gross salary.
Check the employment context
The Labour Ministry’s March 2026 FAQs describe the revised wage definition and distinguish fixed-term employment treatment. This calculator does not handle fixed-term pro-rata calculations, seasonal or piece-rated work, coverage, qualifying service exceptions or a contractual benefit that differs from the general formula.
Use the estimate in a reviewed workflow
Have the payroll owner confirm eligibility, service history, wage basis and applicable limits before determining payment. Retain the calculation with that review. See the Code on Social Security and Labour Ministry FAQs. Sources reviewed 10 September 2026.
Continue with our payroll workflow guide. Inputs are calculated in your browser and are not submitted by this tool.
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