Free tool by USR INFOTECH · Powered by USR AppsGratuity provision calculator
Group your people by pay and service. See the gratuity each person would get today and the total, useful for budgeting. Your actuary or auditor decides the booked figure.
- Budgeting for exits
- Year-end questions from auditors
- Costing a new gratuity policy
Settings
Groups (up to 6)
Gratuity liability
General information, not legal or tax advice. Rules change and differ by state; check with your CA or labour consultant before you act. Everything you type stays in your browser.
Made for people like you
How to use it
- Enter people, average wages and years for each group.
- Pick the currency.
- Read the total.
Good to know
Formula
Wages × 15 ÷ 26 × years of service, for each person, up to the limit of ₹20,00,000 (about US$24,000).
Eligibility
Staff on permanent contracts are generally eligible after 5 years. Fixed-term staff can be eligible after 1 year, pro rata. People with less service are shown as zero only if you enter 0 years.
Averages
Group similar people. Use exact wages and dates for the books.
Not accounting advice
Booking rules depend on your accounting framework and an actuarial valuation. Ask your auditor or actuary.
Questions people ask
Is it free? Do I need to sign up?
Yes, it is free and you do not need to sign up. Open it and use it as often as you like.
Is my data safe?
The numbers are worked out in your browser. Nothing you type is sent to USR unless you choose to email yourself the result.
How accurate is the result?
It is an estimate based on the rules shown on this page as of November 2026, not legal or tax advice. Rules and rates change, so check with your CA before you act.
Is this the amount I must book?
Not necessarily. Booking depends on your accounting framework and an actuarial valuation.
Is my data saved?
No. Everything stays in your browser.
Gratuity worked out for each person
USR Payroll tracks service and wages for each person and works out gratuity at exit.
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