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Gratuity Calculator

Calculate gratuity/severance pay based on years of service, last drawn salary, and applicable rules for different countries.

Tested tool guide Tested browser tools Checked August 16, 2026

What Gratuity Calculator does and how it behaves

A departure payment can change substantially when the applicable country changes. Gratuity Calculator combines the selected jurisdiction or rule set with years of service and last-drawn salary to estimate an end-of-service payment. It is useful for checking a likely settlement before payroll or legal review. The most common mistake is entering total compensation when the selected rule uses a narrower salary basis, such as basic pay. Salary and service figures are processed entirely in the browser and are not uploaded.

How the result is produced

1

Rule selection

The country or rule selection is part of the calculation, not merely a display preference. It determines how the entered service period and last-drawn salary contribute to the estimated payment. The same salary and service figures can therefore produce different results under different selections. Choose the rule governing the employment relationship rather than the employee's citizenship or current location alone.

2

Salary and service inputs

The calculator applies the chosen rule to the entered years of service and last-drawn salary. Before relying on the result, confirm what salary amount belongs in that field and whether the service entry should include a partial year. Definitions of qualifying pay, completed service, rounding, eligibility, and payment limits are jurisdiction-specific and can materially change the result.

Good uses

  • Estimate an employee's possible end-of-service payment before reviewing a final payroll settlement.
  • Prepare a preliminary gratuity or severance provision for an employee leaving after a known period of service.
  • Compare how corrected salary or service figures affect an expected departure payment under the same selected rule.

Limits and checks

  • The selected country may not identify the governing rule by itself. Work location, contract terms, employee classification, sector, and applicable collective arrangements can determine which regime applies.
  • Last-drawn salary is not necessarily gross monthly compensation. Depending on the governing rule, allowances, commissions, bonuses, benefits, or variable pay may be included, excluded, or averaged differently.
  • A service period entered as a simple number of years can conceal important details. Exact start and termination dates, breaks in service, partial years, eligibility conditions, caps, and rounding may affect the legally payable amount.

Common questions

Are gratuity and severance pay the same thing?

Not necessarily. Both describe payments associated with the end of employment, but their legal basis, eligibility conditions, salary definitions, and calculation rules can differ. This calculator places country-specific end-of-service calculations in one tool; that does not make the underlying entitlements interchangeable. Use the option that matches the law or contractual arrangement governing the employment.

Is the calculated result the amount my employer must pay?

No. It is an estimate based on the selected rule and the figures entered. The final amount may differ because of statutory amendments, contractual enhancements, employee classification, excluded service, payment caps, or disputed salary components. Confirm the calculation against current official guidance, the employment contract, payroll records, and qualified advice when the result will be used for a settlement.

References and verification

The behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.

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