In gratuity calculation, 15/26 represents the value of 15 days’ salary out of 26 working days in a month. Employers pay gratuity equal to 15 days of wages for every completed year of service, and the calculation assumes a month has 26 working days.
Use the gratuity calculator online to know the exact gratuity amount in a few simple clicks!
Gratuity is a monetary benefit paid by an employer to an employee as a gesture of appreciation for their long-standing service. It is not a monthly component of your salary, you can understand as a one-time lump sum payout made to an employee upon resignation, retirement, or death.
In India, gratuity is governed by the Payment of Gratuity Act 1972 and is considered a statutory right for eligible employees which we’ll explain later in the blog. It’s typically considered as a part of your long-term financial planning and retirement savings.
You can think of it as a “thank you” bonus from your employer for your loyalty over the years you worked for them.
A Gratuity Calculator is an online tool that helps you calculate the exact gratuity amount that you’re eligible for, based on the inputs like your last drawn salary and your years of service to an organization.
So instead of you manually applying formulas (and risking miscalculation while doing so), a gratuity calculator helps:
It’s shocking that many employees miss out on gratuity because they don’t know they’re eligible for gratuity. Don’t be one of them and calculate your gratuity online today.
To be eligible for gratuity in India there is a certain criterion where you, as an employee must fit in:
*In case of death or disability, gratuity is payable even if the employee hasn’t completed 5 years.
To calculate gratuity, you can use the following standard Gratuity Calculation Formula:
Gratuity = (15 × Last drawn basic salary + DA × Number of years of service) ÷ 26
Let us explain this Gratuity Calculation formula in detail:
Suppose, if you worked for 5 years and your last basic salary + DA was ₹25,000, then your gratuity will be ₹72,115. Here’s how:
Gratuity = (15 × 25,000 × 5) ÷ 26 = ₹72,115
Here are the most important gratuity rules in India:
Gratuity may feel complex, but with the right understanding and tools like Zimyo you’ll always be in control.
Step to Use Zimyo Gratuity Calculator online are:
The Zimyo Gratuity Calculator online is an easy-to-use tool, where you just have to enter the last salary drawn and number of years of service. It gives you an estimate of gratuity an employee would receive after giving five or more years to an organization.
The gratuity calculator India shows the gratuity amount within seconds of entering the basic details. It helps an individual to plan his future or retirement according to his need for a maximum amount of return.
An individual can access the gratuity calculator online from the comfort of their home or anywhere to get the gratuity amount.
You are a government employee (central, state, or local body).
You are a private sector employee.
Private sector employees covered under the Gratuity Act are entitled to gratuity if:
Gratuity Calculation for Private Employees is often part of the Full & Final(FnF) Settlement. So, using a gratuity calculator India avoids underpayments and surprises.
HR Tip: Employers should include gratuity projections in their annual financial statements.
While Gratuity Calculation for Private Employees is covered under the Gratuity Act, the Gratuity for central government employees follows the Central Civil Services (Pension) Rules. While the base formula remains the same, some unique provisions apply:
These employees often receive pension + gratuity, making it a critical part of retirement planning.
Yes, gratuity is often included in your Cost to Company (CTC) breakdown. Usually, 4.81% of your basic pay per annum is allocated toward gratuity. However:
Knowing this will help you decode your salary offer and evaluate long-term benefits wisely.
In gratuity calculation, 15/26 represents the value of 15 days’ salary out of 26 working days in a month. Employers pay gratuity equal to 15 days of wages for every completed year of service, and the calculation assumes a month has 26 working days.
For private sector employees covered under the Payment of Gratuity Act, gratuity is calculated using the formula:
Gratuity = (Last drawn Basic Salary + DA) × 15/26 × Completed years of service.
You take the employee’s final basic pay (plus DA), multiply it by 15/26 to get the value of 15 days’ wages, and then multiply that amount by the total number of full years the employee has worked.
Gratuity calculation is the process of determining how much money an employee is entitled to receive as a lump-sum payment after leaving a company, as per the Payment of Gratuity Act. The amount is based on the employee’s last drawn basic salary (plus DA) and their total completed years of service, using the standard formula:
Gratuity = (Basic + DA) × 15/26 × Years of Service.
When calculating gratuity as part of CTC, companies usually estimate the amount an employee may receive in the future. The standard method is:
Gratuity in CTC = (Basic Salary × 15/26) × 1 year.
Employers typically add one year’s gratuity liability into the annual CTC by assuming the employee will complete 5+ years of service. This is only a projected cost and not the actual payout amount.