Gratuity Calculator

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Gratuity Calculator

Calculate your gratuity amount based on your salary and service period

Please enter a valid salary amount
Please enter a valid allowance amount
Service period must be at least 5 years
Gratuity is only payable after completing 5 years of service.

Results

Gratuity Amount: ₹ 0.00

Gratuity Calculator User Guide

The Gratuity Calculator helps you estimate the gratuity amount payable to an employee based on their basic salary, dearness allowance, and total years of service. Follow this step-by-step guide to use the tool effectively.

Tool Overview

The Gratuity Calculator includes:

  • Input Fields: For entering the basic salary, dearness allowance (if applicable), and total years of service.
  • Service Warning: Alerts you if your service period is less than 5 years, as gratuity is only payable after completing 5 years of continuous service.
  • Results Section: Displays the calculated gratuity amount.

Steps to Use the Tool

1. Input Required Details

  • Monthly Basic Salary:
    • Enter your monthly basic salary in Indian Rupees (₹).
    • Ensure the amount is non-negative and within a valid range.
  • Dearness Allowance(if applicable):
    • Enter the monthly dearness allowance in Indian Rupees (₹).
    • This field is optional; if not applicable, leave it blank or enter 0.
  • Total Years of Service:
    • Input the total years of service (e.g., 10 or 7.5 years).
    • Note: The service period must be at least 5 years.

2. Calculate Gratuity

  • Click the “Calculate Gratuity” button after entering all the inputs.

3. Review the Results

  • If all inputs are valid and the service period is 5 years or more:
    • The tool displays the Gratuity Amount in the Results section.
  • If your service period is less than 5 years:
    • A warning message will appear, stating that gratuity is not applicable.

4. Correct Errors (if any)

  • If any input is invalid (e.g., missing or out of range), a red border and an error message will highlight the problematic field(s).
  • Correct the inputs and click “Calculate Gratuity” again.

Gratuity Formula

\[ \text{Gratuity Amount} = \frac{{(\text{Basic Salary} + \text{Dearness Allowance}) \times 15 \times \text{Years of Service}}}{{26}} \]

  • Basic Salary + Dearness Allowance: Total monthly salary components.
  • 15: Denotes 15 days of salary for each year of service.
  • Years of Service: Total years of continuous service with the employer.
  • 26: Represents the number of working days in a month (as per gratuity rules).

Important Notes

  1. Eligibility:
    • Gratuity is only payable after 5 years of continuous service with the employer, except in cases of death or disability, where the 5-year rule does not apply.
  2. Real-Time Validation:
    • The tool validates inputs in real-time. Incorrect values are flagged with an error message for easy correction.
  3. Rounding:
    • The gratuity amount is rounded to two decimal places for clarity.

Examples

Example 1:

  • Basic Salary: ₹50,000
  • Dearness Allowance: ₹10,000
  • Years of Service: 10

Gratuity Calculation:

\[ \text{Gratuity} = \frac{{(50,000 + 10,000) \times 15 \times 10}}{{26}} \] \[ = ₹3,46,153.85 \]

Example 2:

  • Basic Salary: ₹25,000
  • Dearness Allowance: ₹5,000
  • Years of Service: 4

Result:
A warning appears: “Gratuity is only payable after completing 5 years of service.”

Troubleshooting

  • Error Messages:
    • “Please enter a valid salary amount”: Ensure the salary is non-negative.
    • “Service period must be at least 5 years”: Enter a value of 5 or more in the “Total Years of Service” field.
  • No Results:
    • Check for red error highlights and correct the corresponding inputs.

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