Gratuity Calculator
Latency Status
0ms_NOMINAL
Security Layer
CLIENT_SIDE_ONLY
Gratuity Calculator
Foundry_Core
TheService Tenure Matrix
Gratuity is a statutory reward for your loyalty and long-term service to an organization. For employees who have completed at least 5 years of continuous service, this terminal benefit represents a significant liquidity event upon exit or retirement. Our engine provides a high-fidelity audit of your entitlement, correctly applying the 15/26 fractional logic mandated by Indian labor laws.
The15/26 Formula Logic
The statutory Calculation Vector
Under the Payment of Gratuity Act, the formula is: Gratuity = (Last Drawn Basic + DA) * (15/26) * Number of Years of Service. The '26' represents the number of working days in a month. Our algorithm identifies the rounding rules for service years, where 6 months or more is rounded up to a full year, ensuring your final claim is legally robust.
Tax-Exempt Ceiling Audit
Gratuity is tax-exempt up to a specific limit (currently ₹20 Lakhs for non-government employees). Our calculator identifies the taxable portion if your gratuity exceeds this statutory ceiling, providing a complete view of your 'Net Settlement'.