India Statutory Gratuity Calculator
Calculate your statutory gratuity in INR under the Payment of Gratuity Act 1972 & Code on Social Security 2020.
Gratuity Calculator — India
Code on Social Security, 2020Select & enter details
Employees of establishments covered by the Code on Social Security, 2020.
Estimated entitlement
Eligible₹ 2,30,769
- Salary used
- ₹ 50,000
- Completed years
- 8 yrs
- Partial year
- 91 days
- Base entitlement
- ₹ 2,30,769
- Resignation factor
- 100% — full amount
Year-by-year breakdown
| Period | Years | Rate | Amount |
|---|---|---|---|
| All years | 8 yrs | 15 days' / yr | 2,30,769 |
| Total | 2,30,769 |
How India calculates it
How gratuity is calculated in India
Last drawn basic pay + dearness allowance + retaining allowance. If excluded allowances exceed 50% of total pay, the excess counts as wages.
Payable after 5 years of continuous service (1 year for fixed-term contracts), whether you resign, retire or are terminated. The 5-year condition is waived on death or disablement.
No reduction — resignation, retirement and termination all pay the same.
Ceiling of INR 20,00,000 as currently notified. Governed by the Code on Social Security, 2020 (in force from 21 November 2025).
Frequently asked · India
Which wage is used to calculate gratuity in India: basic or total salary?
The wage used is your last drawn basic pay plus dearness allowance, and any retaining allowance. If excluded allowances exceed 50% of total pay, the excess is also counted as wages.
Is gratuity payable on resignation in India?
Yes, after five years of continuous service. You get the same amount as on retirement or termination.
Does gratuity in India apply to foreign nationals as well as Indian employees?
Yes. Gratuity under the Code on Social Security, 2020 does not depend on nationality. It applies to eligible employees of covered establishments who meet the service condition of five years of continuous service.
Why do companies need an actuarial valuation of gratuity / End of Service Benefit?
Gratuity is a long-term obligation, and accounting standards such as IAS 19 (and Ind AS 19 or AS 15 in India) require employers to measure it with actuarial methods. A valuation uses assumptions about future salary growth, employee turnover, mortality and discount rates, and it applies the projected unit credit method. For this reason it differs from the statutory calculator above, which shows the amount due today. An actuarial valuation supports the company's financial statements, the audit and funding decisions.
Ind AS 19 / AS 15 Actuarial Valuation Reports
Audit-proof actuarial valuations for Indian employers — covering Gratuity, Earned Leave, Privilege Leave, and Pension under Ind AS 19 / AS 15.
Talk to India Actuaries