Statutory · India + UAE

Gratuity Calculator for India's 1972 Act and UAE End-of-Service Gratuity

A gratuity calculator turns your salary and length of service into the end-of-service benefit an employer must pay when the job ends. Compute Indian gratuity under the Payment of Gratuity Act 1972 or UAE end-of-service gratuity under the UAE Labour Law. Free, instant, no signup.

Gratuity calculator: dashboard with basic + DA, years of service and gratuity payable tiles and an India + UAE rules tag

Gratuity payable

₹288462

Before ₹20 lakh cap: ₹288462

Last drawn basic + DA
₹50000
Completed years
10
Formula
Basic × 15 ÷ 26 × years

Indicative only. Statutory rates change; confirm against the current rules before acting on a figure.

Gratuity calculator in brief

WappBlaster's gratuity calculator answers one practical question: how much end-of-service money is legally owed when someone leaves? In India mode the tool multiplies last drawn basic plus dearness allowance by 15, divides by 26 and scales the result by completed years, then compares the total with the ₹20 lakh ceiling fixed by the 2018 amendment to the Payment of Gratuity Act. Eligibility normally starts after 5 years of continuous service, or 4 years and 240 days, at establishments employing 10 or more people. In UAE mode a limited contract earns 21 days of basic for each of the first five years and 30 days for every later year, capped at two years of wages, while a single completed year is enough to qualify. The free HR utility from WappBlaster prints its formula with every answer, so a payroll clerk or departing employee can verify the arithmetic before signing a final settlement.

What is a gratuity calculator?

A gratuity calculator is a tool that estimates the lump sum an employer owes on exit, using last drawn basic pay and completed years of service.

WappBlaster offers this gratuity calculator free and without signup, with an India mode for the Payment of Gratuity Act 1972 and a UAE mode for end-of-service pay.

  • Indian results are shown both before and after the ₹20 lakh cap.
  • The UAE mode treats limited contracts and older unlimited contracts differently, as the page explains.
  • Leave salary is not part of this figure; the leave encashment calculator covers it.

Gratuity calculator benefits

  • Two countries in one tool

    HR teams paying people in India and the UAE switch jurisdiction instead of opening a second calculator.

  • Formula shown beside the result

    Each answer lists the basic, the years counted and the formula used, so a finance reviewer can retrace it.

  • Cap check for India

    The pre-cap amount sits next to the payable amount, which shows at once whether the statutory ceiling bites.

  • No account needed

    An employee checking a settlement offer can run the numbers without handing over an email address.

  • Worked examples on the page

    One Indian and one UAE case walk through the arithmetic step by step for anyone unsure of the inputs.

Gratuity Calculator: how it works

Gratuity is a lump-sum payment from employer to employee on exit, paid after a qualifying service period. Indian gratuity is governed by the Payment of Gratuity Act 1972; UAE end-of-service gratuity is governed by the UAE Labour Law. Both are calculated against last drawn basic wage (plus DA in India) and years of completed service, but the formulas differ.

Formula

  • India: Gratuity = (Last drawn basic + DA) × 15/26 × completed years of service. Capped at Rs. 20 lakh.
  • UAE (limited contract): 21 days basic per year for the first 5 years, 30 days basic per year thereafter. Capped at 2 years' wages.
  • UAE (unlimited contract, pre 2022 hires): Reduced gratuity if employee resigns before 5 years (1/3 for 1-3 years, 2/3 for 3-5 years, full thereafter).
  • Qualifying service: India, 5 years completed (or 4 years 240 days). UAE, 1 year completed.

Worked example

An Indian employee with Rs. 50000 basic + DA last drawn and 10 completed years of service: Gratuity = 50,000 × 15/26 × 10 = Rs. 288461. A UAE employee with AED 8000 basic and 7 completed years of service: First 5 years = 8,000 ÷ 30 × 21 × 5 = AED 28000. Years 6-7 = 8,000 × 2 = AED 16000. Total = AED 44000 (within 2-year cap of AED 192000).

Payroll staff settling an exit often also check overtime pay under the Factories Act, read about HR and payroll messaging for Indian SMEs and browse our 2026 report on the SMB workforce.

Gratuity calculator inputs explained
Feature What it means Where to find it
Jurisdiction Whether Indian or UAE gratuity rules apply to the job. The country named on your employment contract or labour card.
Last drawn basic + DA (monthly) The monthly wage the formula multiplies; in the UAE this is basic only, without allowances. The basic and DA lines on your most recent payslip, or the labour-card contract in the UAE.
Completed years of service Whole years worked for the same employer, the second multiplier in the formula. Your joining date in the appointment letter, counted to your last working day.

Gratuity calculator limits: when it is not enough

  • The figure is indicative, because statutory rules change; if a settlement is disputed or headed to a labour court, have an accountant or employment lawyer check it.
  • Contractual gratuity above the statutory amount, ex-gratia payments and tax treatment are outside what the tool computes.

Gratuity Calculator FAQ

Who is eligible for gratuity in India?

Employees who have completed 5 years of continuous service (or 4 years and 240 days in the 5th year) with the same employer, under the Payment of Gratuity Act 1972. Applicable to organisations with 10 or more employees.

Link to this answer

What is the maximum gratuity payable in India?

Rs. 20 lakh under the current cap (set by the Payment of Gratuity (Amendment) Act 2018). Some employers pay more as a contractual benefit; the excess is taxable.

Link to this answer

Is gratuity taxable in India?

Government employees: fully exempt. Private sector under Gratuity Act: exempt up to Rs. 20 lakh. Private sector not under Act: exempt up to half-month salary × years served, capped at Rs. 20 lakh.

Link to this answer

What if I exit before 5 years in India?

Generally not eligible, except in case of death or disablement, where gratuity is payable regardless of service length. Some companies pay ex-gratia by policy.

Link to this answer

Is UAE gratuity different for resignation vs termination?

Under the current UAE Labour Law (post-2022 reforms), gratuity is calculated the same way regardless of whether the contract ends by resignation or termination, as long as 1 year of service is completed.

Link to this answer

Does this calculator include leave salary on exit?

No, this calculator gives only the gratuity figure. UAE final settlement also includes leave salary, leave encashment, repatriation ticket and dues. Use our leave-encashment calculator for the leave component.

Link to this answer

What counts as 'basic wage' for UAE gratuity?

Basic wage on the labour-card contract, typically excluding housing, transport and other allowances. Confirm against your contract; the labour-card basic is the legal anchor.

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How much does a gratuity calculator cost with WappBlaster?

Nothing. The calculator is free to use, asks for no signup and returns the figure instantly under both Indian and UAE rules.

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How is gratuity calculated for 10 years of service in India?

Multiply last drawn basic plus DA by 15, divide by 26, then multiply by the completed years. The worked example on this page, ₹50000 basic plus DA over 10 years, comes to ₹288462, well below the ₹20 lakh cap.

Link to this answer

What is the best gratuity calculator for HR teams paying staff in India and the UAE?

Pick one that covers both countries and prints its formula. WappBlaster's free tool switches between the Payment of Gratuity Act 1972 and UAE Labour Law, and lists the basic, the years and the formula beside every answer.

Link to this answer

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