# Gratuity calculator India 2026: 15/26 formula | Peoplo.ai

URL: https://peoplo.ai/in/en/tools/gratuity-calculator/

> Free gratuity calculator for India under the Code on Social Security: enter basic pay, DA and years of service. Covers the 5-year rule and ₹20 lakh cap.

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# Gratuity calculator

Gratuity is 15 ÷ 26 × last monthly basic pay plus DA × years of service, paid after 5 years (1 year for fixed-term employees) and capped at ₹20 lakh. Enter the last wages and service to see what an employee is owed under the Code on Social Security.

Gratuity payable

₹0

Years counted

15 ÷ 26 × wages × years

Ceiling ₹20,00,000

Estimates for general information, using rules checked 22 October 2026. Not tax or legal advice. Nothing you enter leaves your browser.

## How it is worked out

Gratuity is **15 days' wages for every completed year of service** , with a month counted as 26 working days: 15 ÷ 26 × last monthly wages × years. Wages mean basic pay plus dearness allowance.

A part year of more than six months counts as a full year, so 7 years and 8 months counts as 8. Regular employees need at least 5 years of continuous service, except on death or disablement. Fixed-term employees qualify after 1 year and are paid for the exact time served.

The ceiling remains **₹20,00,000** until a new one is notified, and gratuity up to that amount is tax-free for private-sector employees. It must be paid within 30 days of becoming due.

For the formula step by step, eligibility and what the labour codes change, read [how to calculate gratuity in India](https://peoplo.ai/in/en/blog/gratuity-calculation-formula/) .

Sources · checked 22 October 2026

- [India Code: Code on Social Security, 2020 (gratuity, section 53)](https://www.indiacode.nic.in/bitstream/123456789/16823/1/aA2020-36.pdf)
- [Labour Law Reporter: gratuity under the labour codes](https://labourlawreporter.com/gratuity.asp)

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