Gratuity Calculator
An on-page estimate using the 15/26 formula. This is not a product feature of OXHRM payroll.
Estimate
Years counted: 5
Eligible (5-year rule): Yes
Estimated gratuity: ₹75,000.00
Amount within the ₹20 lakh tax-free cap shown here: ₹75,000.00
Formula used
Last drawn basic pay plus dearness allowance × 15 ÷ 26 × completed years of service. Extra months greater than 6 are rounded up to the next year. Service below 5 completed years after that rounding is treated as not eligible on this page.
The formula is commonly associated with the Payment of Gratuity Act, 1972, and gratuity provisions under the Code on Social Security. This calculator does not apply other exceptions or later amendments that may apply to a specific employer or employee.
Estimate only, not legal advice. Confirm the amount with a qualified adviser and the current statute before paying or claiming gratuity. OXHRM does not state that its payroll product computes statutory gratuity.
Frequently asked questions
How is this gratuity estimate calculated?+
The estimate uses last drawn basic pay plus dearness allowance × 15/26 × completed years of service. Extra months over 6 are rounded up to the next year. Eligibility uses a 5-year completed-service rule.
Does OXHRM calculate statutory gratuity in payroll?+
This page is a standalone estimate tool. The site does not list statutory gratuity calculation as a payroll feature.
What is the ₹20 lakh figure?+
₹20 lakh is shown as the tax-free cap used on this page. Confirm the current statutory limit with a qualified adviser.