🤝 Gratuity Calculator
Estimate an end-of-service gratuity payout based on last drawn salary and years of service, using a widely used formula.
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What is gratuity?
Gratuity is a lump-sum end-of-service benefit paid to an employee, typically based on their length of service and last drawn salary, used in many payroll systems as a retirement or severance-style benefit.
The formula
Gratuity = (15 × Last Drawn Monthly Salary × Years of Service) / 26, a widely used formula that treats a “month” as 26 working days and awards 15 days of pay for every year served.
This is a general estimate for planning purposes; exact eligibility rules, caps, and formulas vary significantly by country and employer — check your local labor law or employment contract for the precise calculation that applies to you.
Last reviewed August 2026