What gratuity is actually owed
Fifteen days' wages for every completed year, on the last drawn basic plus dearness allowance. Note that last part — using gross is the mistake that inflates most online calculators.
Calculate your gratuity payout
Understand what is owed after continuous service under the Payment of Gratuity Act.
Basic plus DA — not gross, and not CTC. Using gross here is the most common mistake and inflates the result.
The formula
(15 ÷ 26) × last drawn wage × completed years
Twenty-six is the number of working days assumed in a month, and fifteen days' wages accrue for each completed year.
Based on 8 counted years of service
This is an estimate for planning. Gratuity is capped by statute, and treatment differs for employees not covered by the Act, for death or disablement, and where an employer's own policy is more generous.
Confirm the final figure with your finance team before relying on it.
Punchly does this every month, for every employee
Payroll runs from the attendance you already captured — payable days, loss of pay, approved overtime, statutory deductions and payslips. Bundled with Punchly at no extra cost.