Calculate your employee severance, gratuity, and end-of-service benefits based on your salary and years of service. Get accurate estimates for US, India, UAE, and other countries.
Select your country for accurate calculation
Basic salary + Dearness Allowance (if applicable)
Total completed years of continuous service
Months beyond completed years (0-11)
Number of days of salary per year of service
Usually 26 (working days) or 30 (calendar days)
Estimated Gratuity Amount
$19,230.77
Total Service Period
10 years, 0 months
✓ Eligible: You meet the minimum service requirement
Calculation Formula:
(50,000 × 5 × 10) ÷ 26
Gratuity is a monetary benefit paid by an employer to an employee as a token of appreciation for services rendered over the years. It's a form of end-of-service benefit that employees receive when they leave the organization after completing a minimum period of continuous service.
In most countries, gratuity serves as a financial cushion for employees transitioning between jobs or entering retirement. It's typically calculated based on the employee's last drawn salary and the number of years of service completed with the employer.
The US does not have statutory gratuity laws, but many employers offer severance packages:
Severance = (Monthly Salary × Weeks Per Year × Years) ÷ 4.33
Common formula:
Note: Severance in the US is voluntary and based on company policy, employment contracts, or negotiation. This calculator provides an estimate based on common practices.
Under the Payment of Gratuity Act, 1972:
Gratuity = (Last Salary × 15 × Years of Service) ÷ 26
Where:
Eligibility: Minimum 5 years of continuous service (waived for death or disability)
Based on UAE Labour Law:
For Unlimited Contracts:
For Limited Contracts:
Note: Based on basic salary only (excludes allowances)
Gratuity formulas vary globally:
Gratuity is tax-exempt up to certain limits:
Government Employees
Entire gratuity amount is tax-exempt (no upper limit)
Private Sector (Covered)
Tax-exempt up to ₹20 lakhs. Excess amount is taxable under "Salary" head
Note: The exemption is the least of: (a) Actual gratuity received, (b) ₹20 lakhs, (c) 15 days' salary × years of service ÷ 26
The UAE has no personal income tax, so gratuity payments are not taxed. However, with the introduction of corporate tax, companies need to ensure proper accounting of gratuity provisions.
Submit a written application to your employer requesting gratuity payment. Include your details, date of joining, and date of leaving.
Submit necessary documents: resignation/retirement letter, relieving letter, salary slips, and bank account details.
The employer verifies your service period, last drawn salary, and calculates the gratuity amount as per applicable law.
Gratuity must be paid within 30 days. If delayed, you can file a complaint with the labor authority or controlling authority.
In India, you generally won't receive gratuity if you resign before completing 5 years of service. However, in UAE and some other countries, you may receive a reduced gratuity amount even if you resign before 5 years (pro-rata basis).
Yes, they are different. Provident Fund is a retirement savings scheme where both employee and employer contribute monthly. Gratuity is a lump sum payment made by the employer alone when you leave. You can receive both benefits.
An employer can only forfeit gratuity if the employee is terminated for misconduct involving moral turpitude, violence, or theft. In all other cases, if you meet the eligibility criteria, the employer is legally bound to pay gratuity.
In India, gratuity is calculated on Basic Salary + Dearness Allowance only. In UAE, only basic salary is considered (allowances are excluded). Other components like HRA, bonuses, and allowances are typically not included.
It depends on the country and contract terms. In India, contract employees working through contractors may not be eligible unless specified. In UAE, both limited and unlimited contract employees are entitled to end-of-service gratuity.
In most cases, if you've worked for 6 months or more in a final partial year, it's rounded up to a full year for gratuity calculation. Service less than 6 months in the final year is usually not counted.
Use our free gratuity and severance calculator to estimate your end-of-service benefits. Know your rights and plan your financial future better. Perfect for employees in the US, India, UAE, and other countries!
