Fifteen over twenty-six, then the door
Covered employees: last drawn wages (basic + DA) × 15/26 × completed years. The 26 is the Act treating a month as 26 working days. Using 15/30 is a different, usually smaller, private formula some offer letters still print. This page is the statute fraction.
Five years of continuous service is the usual eligibility gate. If you type 4.9, I show the note and a zero. I will not round you into a payout. A part-year in excess of six months counts as a year once you are eligible — 6.7 years becomes 7 in the multiplier, 6.4 stays 6. Death and disablement can waive the five-year rule in the Act. That waiver is not a slider. Do not use this box to settle a death claim.
The cap, dated
The amount payable under the Act shall not exceed ₹20 lakh. That ceiling came from S.O. 1420(E) dated 29 March 2018. I checked on 26 August 2026 that this was still the number people cite; if a later notification raises it, the trust rail should move, not a blog graphic. When the formula exceeds the cap, both numbers show so you can see the haircut.
Worked example
Last drawn basic ₹80,000, DA ₹0, 10 years. 80000 × 15/26 × 10 ≈ ₹4,61,538. Under the cap. Same salary, 4 years: eligibility note, ₹0 on this page. Same salary, 50 years: formula blows past ₹20 lakh, strip shows the cap.
Establishments not covered by the Act, tax exemption, and “gratuity inside CTC” are other fights. The salary calculator does not pay this out; it only sketches CTC. Pair with the EPF calculator if you are staring at a full-and-final that also has PF.
Questions
What is the formula?
(Last drawn basic + DA) × 15/26 × completed years of service. A part-year in excess of six months counts as a year under the Act.
Why 15/26?
Fifteen days’ wages for each year, a month taken as 26 working days. That is the Act’s fraction, not 15/30.
Five-year rule?
If you type fewer than 5 years, this page shows the eligibility note and ₹0. It will not invent a payout. Death and disablement can waive the five years in the Act; I will not compute that waiver from a checkbox.
What is the cap?
₹20,00,000. Ministry of Labour S.O. 1420(E), effective 29 March 2018. If the formula exceeds it, the strip shows the cap.
Is tax modeled?
No. Exemption under the tax Act is a separate question. This is the Payment of Gratuity Act arithmetic.
Are numbers uploaded?
No.