Gratuity Calculator
Estimate gratuity on exit — with calm explanations about eligibility and Basic salary, not legal advice.
Your gratuity estimate is ready
Review eligibility and formula below — confirm with HR before planning your exit.
At a glance
Your gratuity estimate
Estimated gratuity: ₹1,44,231
(₹50,000 × 15 × 5) ÷ 26
Typically after 5 years of continuous service under the Payment of Gratuity Act.
A low Basic share can reduce PF contributions, gratuity accrual, and loan eligibility even when total CTC looks strong.
Immediate next steps
Worth clarifying
- Indicative estimate only — not legal advice. Confirm eligibility, tenure counting, and calculation basis with HR before relying on this figure.
- Eligibility depends on continuous service rules.
Estimated gratuity
Indicative only — confirm eligibility and calculation with HR.
₹1,44,231
Based on 5 completed years of service
(₹50,000 × 15 × 5) ÷ 26
Indicative estimate only — not legal advice. Confirm eligibility, tenure counting, and calculation basis with HR before relying on this figure.
Eligibility
Typically after 5 years of continuous service under the Payment of Gratuity Act.
Statutory benefit payable after 5 years of continuous service — calculated on last drawn Basic.
Death or disability may trigger eligibility earlier — confirm policy with HR.
Formula and continuous service
How the estimate is derived — not a legal guarantee.
Based on last drawn Basic salary only — Dearness Allowance may apply at some employers.
Uses completed years of service (rounded down) — partial years follow employer policy.
Statutory cap of ₹20 lakh applies when applicable.
This is an indicative estimate — not legal advice or a guaranteed payout.
After five years of continuous service, gratuity entitlement typically applies on exit under the Payment of Gratuity Act.
Mergers, acquisitions, and group transfers may affect continuity — ask HR how your tenure is counted.
Benefits are part of total compensation. Gaps in coverage or unclear policies can affect financial planning.
Common misconceptions
Gratuity is automatically part of your monthly in-hand salary.
Employers often provision gratuity in CTC — it is a separation benefit, not monthly cash flow.
Any CTC line labelled gratuity means you will receive it on exit.
CTC provision and actual gratuity payout on exit are different — confirm eligibility and calculation basis.
Low Basic does not affect gratuity.
A low Basic share can reduce PF contributions, gratuity accrual, and loan eligibility even when total CTC looks strong.
Salary implications
A low Basic share can reduce PF contributions, gratuity accrual, and loan eligibility even when total CTC looks strong.
A low Basic share can reduce PF contributions, gratuity accrual, and loan eligibility even when total CTC looks strong.
Low Basic reduces gratuity accrual — a long-tenure consideration often overlooked at offer stage.
Questions for HR
- Whether gratuity is part of CTC provision or separate
- Basic salary used for gratuity calculation
- Company policy beyond statutory minimum
- Is my tenure counted from joining date or confirmation date?
- Does the company pay above the statutory minimum?
- How is partial year service treated in the calculation?
Typical offer lifecycle
A calm map of what usually happens from offer to long-term milestones — not a promise about your employer.
Gratuity eligibility
Year 5+What usually happens: After five years of continuous service, gratuity entitlement typically applies on exit under the Payment of Gratuity Act.
Why it matters: Gratuity is calculated on last-drawn Basic — a low Basic share affects long-term separation benefits.
Related concepts: Gratuity, Basic salary, Exit and separation
- How is Basic structured for gratuity calculation in this company?
- Does the five-year rule apply from joining date or confirmation date?
- What exit benefits apply if I leave before five years?
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Place gratuity in the wider compensation picture.
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Frequently asked questions
Is this gratuity amount guaranteed?
No. Salryd provides an indicative estimate under the standard formula. Employers may have different tenure counting rules, DA inclusion, or policies above the statutory minimum.
When am I eligible for gratuity?
Typically after five years of continuous service under the Payment of Gratuity Act. Some situations like death or disability may differ — confirm with HR.
Does Salryd store my salary?
No. Calculations run in your browser. Inputs may be saved locally on your device only.
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