BYTETOOLS

Gratuity Calculator

Calculate end-of-service gratuity under the Indian 15/26 rule, the UAE 21/30-day rule or your own company policy, with editable caps and rounding.

Salary and service

Factors — editable, because every scheme sets its own

₹317,307.69
Gratuity payable
₹50,000.00
Salary basis (monthly)
₹1,923.08
Daily wage
11.00
Years counted

Year-by-year build-up

Days credited and gratuity earned in each year of service
Year of serviceDays creditedEarned that yearCumulative
115.00₹28,846.15₹28,846.15
215.00₹28,846.15₹57,692.31
315.00₹28,846.15₹86,538.46
415.00₹28,846.15₹115,384.62
515.00₹28,846.15₹144,230.77
615.00₹28,846.15₹173,076.92
715.00₹28,846.15₹201,923.08
815.00₹28,846.15₹230,769.23
915.00₹28,846.15₹259,615.38
1015.00₹28,846.15₹288,461.54
1115.00₹28,846.15₹317,307.69
₹317,307.69
Before any statutory cap
₹317,307.69
Within the tax-free cap
₹0.00
Above the tax-free cap

Gratuity = days of salary per year × (monthly salary basis ÷ the day divisor) × years counted. Under the Indian Payment of Gratuity Act that is 15 × salary ÷ 26 × years, so ₹50,000 of basic plus dearness allowance over 10 years gives ₹2,88,461.54. The UAE rule credits 21 days a year for the first five years and 30 days a year after that, so AED 10,000 of basic over seven years gives AED 55,000. Every factor, divisor, rounding rule, minimum service period and cap above is an editable field with a labelled default. Employment law and tax treatment vary by country, employer and reason for leaving — confirm with your HR team or a local adviser. Estimates only, not legal or tax advice.

What is the Gratuity Calculator?

The ByteTools Gratuity Calculator works out the end-of-service benefit an employee is owed from their last drawn salary and completed years of service.

  • Presets for the Indian 15/26 rule, the unorganised-sector 15/30 variant and the UAE tiered rule
  • Tiered mode for schemes that raise the day rate after a set number of years
  • Three part-year rounding rules: round up above six months, pro-rata, or completed years only
  • Editable minimum qualifying service, statutory maximum and tax-free cap
  • Year-by-year build-up showing days credited and the amount earned each year
  • Splits the result into the portion within the tax-free cap and the portion above it

How to use the Gratuity Calculator

  1. 1

    Choose a gratuity rule preset, which fills the factors below with that scheme's defaults.

  2. 2

    Enter the last drawn basic salary, any dearness allowance, and your completed years and extra months of service.

  3. 3

    Adjust the days credited per year, the day divisor and the part-year rounding rule if your scheme differs.

  4. 4

    Set the minimum qualifying service, the statutory maximum and the tax-free cap.

  5. 5

    Read the gratuity payable, the daily wage used, and the year-by-year build-up table.

About the Gratuity Calculator

The ByteTools Gratuity Calculator works out the end-of-service benefit an employee is owed from their last drawn salary and completed years of service. Pick the Indian Payment of Gratuity Act rule, the UAE tiered rule or a custom company policy, and it shows the amount alongside a year-by-year build-up of how it accrued.

Every factor is an editable field: the days of salary credited per year, the divisor used to turn a monthly salary into a daily wage, whether dearness allowance counts, how a part-year is rounded, the minimum service to qualify and any statutory or tax-free cap. Gratuity rules differ by country, employer and even industry, so nothing is hardcoded.

All arithmetic runs locally in your browser with nothing uploaded, so real salary figures stay private. This is an estimate for planning — employment law and tax treatment vary, so confirm the entitlement with your HR team or a local adviser.

Frequently asked questions

How is gratuity calculated in India?

Under the Payment of Gratuity Act it is 15 days of salary for each completed year, where a month counts as 26 working days: gratuity = 15 × last drawn salary × years ÷ 26. On a basic plus dearness allowance of 50,000 over 10 years that is 2,88,461.54.

How is UAE end-of-service gratuity calculated?

Twenty-one days of basic pay for each of the first five years, then thirty days a year after that, with the daily wage taken as monthly basic divided by thirty. On 10,000 of basic over seven years the total is 35,000 for the first five years plus 20,000 for the last two, giving 55,000.

What salary is gratuity based on?

Usually the last drawn basic salary, with dearness allowance included where the scheme says so and allowances such as housing and transport excluded. The tool has a tick box for dearness allowance so you can match whichever basis your employer applies.

How is a part-year of service counted?

Under the Indian Act a final year of more than six months rounds up to a full year, while other schemes pro-rate the exact fraction and some count completed years only. All three rules are offered here because the choice changes the answer materially.

How many years do I need to qualify for gratuity?

Five years of continuous service under the Indian Act and one year in the UAE, though rules on resignation, dismissal and death in service differ. The minimum is an editable field, and the tool shows the formula result with a notice when your service falls below it.

Is gratuity taxable?

It depends on your country, your employer type and the amount. Many jurisdictions exempt gratuity up to a cap and tax the excess, so the calculator splits the result into the portion within your tax-free cap and the portion above it. Confirm the treatment locally.

Related tools