Calculate your gratuity entitlement, statutory notice period, and PF contributions under Indian labour law
| Eligibility | Minimum 5 years continuous service (except death or disablement - payable from day 1) |
| Formula (Covered) | (Basic + DA) x 15/26 x years of service |
| Formula (Not Covered) | (Basic + DA) x 15/30 x years of service |
| Max Gratuity | Rs. 20 lakhs (enhanced in 2018 amendment) |
| Payment Timeline | Employer must pay within 30 days of becoming due. Interest at 10% p.a. after that. |
| Forfeiture | Gratuity can be forfeited (wholly or partly) only for: wilful omission, misconduct causing damage, or termination for moral turpitude offence. |
| Applicable statute | Payment of Gratuity Act, 1972 read with Payment of Gratuity (Central) Rules, 1972 |
Complete this form to generate a formal gratuity demand letter (equivalent to Form I, Payment of Gratuity Rules 1972) to submit to your employer.
Any employee who has completed 5 years of continuous service with the same employer is eligible under the Payment of Gratuity Act, 1972. This covers all establishments with 10 or more employees.
For employees covered under the Act: Gratuity = (Last Drawn Salary x 15/26) x Years of Service. For non-covered employees: Gratuity = (Last Drawn Salary x 1/2) x Years of Service. Salary means Basic + Dearness Allowance.
The maximum gratuity payable under the Payment of Gratuity Act is Rs. 20 lakhs (Rs. 20,00,000) as per the current amendment. Any amount above this limit is discretionary.
The employer must pay gratuity within 30 days from the date it becomes payable. If delayed beyond 30 days, simple interest at 10% per annum applies on the outstanding amount.
Send a legal notice to your employer demanding payment. If still unpaid, file a complaint with the Controlling Authority (District Labour Commissioner) under Section 7 of the Payment of Gratuity Act.