What Is a Gratuity Calculator?
A gratuity calculator is an employee benefit estimation tool that helps calculate the gratuity amount an employee may receive after completing a period of service with an employer.
The estimated amount is generally based on eligible salary, total service duration, gratuity days awarded for each service year, and the number of salary days used to determine a daily wage.
Information Used in the Calculation
- The employee's eligible monthly salary.
- Completed service years and additional months.
- The number of gratuity salary days awarded for each eligible year.
- The monthly salary divisor, such as 26 or 30 days.
Basic Salary Versus Gross Salary
Some employers calculate gratuity using only basic salary, while others may include eligible allowances or use another salary definition. Enter the salary amount specified in your employment contract, company policy, or applicable employment rules.