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● Free HR tool · 9 countries
Gratuity Calculator 2026
This free gratuity calculator works out gratuity, end of service benefits, severance or redundancy pay in seconds. Choose your country, enter your salary and dates of service, and the gratuity calculator applies that country’s current labor law.
- 9 countries, each with its own rules
- Updated for 2026 law changes
- Formula and full breakdown shown
Calculate gratuity
Pick a country, enter your salary and dates of service.
Employee type
Employer covered under the Gratuity Act?
₹
Basic pay plus Dearness Allowance. Add gross pay below to apply the 50% wage rule.₹
Your result is ready
Share a few details with your work email to see your result. We will also send you useful HR resources.
What is gratuity? Gratuity is a lump sum an employer pays when employment ends, as a reward for years of service. It is usually a number of days or weeks of salary for each year worked, multiplied by years of service. The days per year, the salary used, the minimum service and any cap depend on the country, which is why this gratuity calculator asks for your country first.
Gratuity rules by country
The gratuity calculator uses the rules below. Pick a country above and the calculator switches to that formula automatically.
| Country | Formula | Salary used | Minimum service |
|---|---|---|---|
| India | 15 / 26 × wages per year, capped at ₹20,00,000 | Basic + DA (at least 50% of pay) | 5 years (1 year for fixed-term) |
| UAE | 21 days per year for 5 years, then 30 days per year, capped at 2 years of wages | Basic salary | 1 year |
| Saudi Arabia | Half a month per year for 5 years, then 1 month per year. Reduced on resignation under 10 years | Basic + allowances | None if terminated, 2 years if resigning |
| Qatar | 21 days per year (3 weeks) | Basic salary | 1 year |
| Kuwait | 15 days per year for 5 years, then 1 month per year, capped at 18 months. Reduced on resignation under 10 years | Total wage | None if terminated, 3 years if resigning |
| Pakistan | 30 days of wages per year, part year over 6 months rounded up | Last drawn wages | More than 6 months |
| Philippines | Separation pay of half or 1 month per year, or retirement pay of 22.5 days per year | Latest salary | Retirement: 5 years and age 60 |
| UK | Statutory redundancy: 0.5, 1 or 1.5 weeks per year by age, weekly pay capped at £751 | Gross weekly pay | 2 years |
| USA | No federal requirement. Policy is often 1 to 2 weeks per year. New Jersey: 1 week per year for mass layoffs | Base pay | Set by policy |
All figures are statutory minimums for private sector employees, except the US where severance is set by company policy. Nationals of the GCC countries are usually covered by social insurance instead of gratuity.
How to use the gratuity calculator
- Choose your country. The form changes to match that country’s rules, such as resignation or termination in Saudi Arabia and Kuwait, or date of birth in the UK.
- Enter your salary. Use the salary the law uses for your country, for example basic salary in the UAE and Qatar, or basic plus allowances in Saudi Arabia.
- Enter your joining date and last working day. The gratuity calculator works out your exact service in years and days.
- Click Calculate. You get the amount, the formula used and a breakdown.
Which salary is used for gratuity?
Most countries use the last salary drawn before leaving. Some use basic salary only (India, UAE, Qatar), while others include regular allowances (Saudi Arabia, Kuwait, Pakistan). Bonuses and one-off payments are generally left out. After you choose a country, the gratuity calculator shows a salary note under the input so you enter the right figure.
Gratuity, severance and redundancy pay
These are different names for similar end of employment payments. Gratuity and end of service benefits are used in India, Pakistan and the Gulf. Redundancy pay is the UK term and is paid only when a role is made redundant. Severance pay is the US term and is mostly set by company policy rather than law. One gratuity calculator handles all of them, so you do not need a separate tool for each country.
Sources
The gratuity calculator is based on these official and legal sources, reviewed in October 2026:
- India: Ministry of Labour and Employment (Payment of Gratuity Act, 1972 and Code on Social Security, 2020)
- UAE: UAE Government portal, end of service benefits
- Saudi Arabia: Ministry of Human Resources and Social Development
- UK: GOV.UK, redundancy pay
- USA: US Department of Labor, WARN Act
- Philippines: Republic Act 7641 (Senate of the Philippines)
Running HR across multiple countries?
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Frequently asked questions
How is gratuity calculated?
Gratuity is usually a set number of days or weeks of salary for each year of service. India pays 15 days per year using 15 / 26 of monthly wages, and the UAE pays 21 days per year for the first 5 years and 30 days after that.
Is this gratuity calculator free?
Yes. The gratuity calculator is free to use for all 9 countries. You only share your name, work email and phone number once to see results.
Is gratuity paid if I resign?
In most countries yes, once you meet the minimum service. Saudi Arabia and Kuwait reduce the amount for resignation, and the UK pays redundancy pay only when a role is made redundant.
What is the minimum service for gratuity?
It depends on the country: 5 years for permanent employees in India, 1 year in the UAE and Qatar, 2 years in the UK, and more than 6 months in Pakistan.
Is gratuity taxable?
It varies. In India gratuity is tax-free up to ₹20,00,000 for private sector employees. Gulf countries do not tax gratuity. In the UK the first £30,000 of redundancy pay is usually tax-free.
Are my salary details stored?
No. The gratuity calculator runs in your browser, so salary and dates are never sent anywhere. Only the name, work email and phone number you enter are shared with Peoplebox.