Calculating your gratuity amount is straightforward once you know the Gratuity formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Gratuity Calculator.
What is Gratuity?
The Gratuity calculation tells you your gratuity amount from a few simple inputs. The figure you are solving for here is the gratuity amount, expressed in INR.
The Gratuity formula
The core formula is:
Gratuity amount = 15 × Last drawn salary (Basic + DA) × Years of service ÷ 26Here is what each input means:
- Last drawn salary (Basic + DA) — a money amount. Example: ₹50,000.
- Years of service — a value you set on the slider. Example: 10 years.
How to calculate it step by step
- Write down the last drawn salary (basic + da) (for example, ₹50,000).
- Note the years of service (for example, 10 years).
- Apply the formula above to get your gratuity amount.
- Double-check the result with the Gratuity Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Last drawn salary (Basic + DA) | ₹50,000 |
| Years of service | 10 years |
| Gratuity amount | ₹2,88,462 |
With last drawn salary (basic + da) of ₹50,000 and years of service of 10 years, the gratuity amount works out to ₹2,88,462.
Example 2
With last drawn salary (basic + da) of ₹1,00,000 and years of service of 10 years, the gratuity amount works out to ₹5,76,923.
| Result | Value |
|---|---|
| Gratuity amount | ₹5,76,923 |
Example 3
With last drawn salary (basic + da) of ₹25,000 and years of service of 10 years, the gratuity amount works out to ₹1,44,231.
| Result | Value |
|---|---|
| Gratuity amount | ₹1,44,231 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
Prefer not to do the maths by hand? — the Gratuity Calculator does it instantly, for free, with the formula and a worked example built in.
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