Gratuity Calculator in Months — India 2026
Calculate gratuity when you know your service period in months rather than years. Whether you have served 54 months, 72 months, or 36 months — this tool converts and calculates using the Payment of Gratuity Act formula with proper rounding rules applied.
Gratuity = (Basic + DA) × 15 × Rounded Years ÷ 26Use the Calculator
Used only to verify the 50% wage floor rule under the new Labour Code.
Wages will be at least 50% of monthly CTC
Enter your CTC/Salary and service period to calculate
Enter your service period in years and months. The calculator automatically applies the rounding rule.
Month-to-Year Gratuity Reference Table
Common service periods in months — quickly check eligibility and rounding.
| Months | Years Equivalent | Permanent Employee | Fixed-Term Contract | Notes |
|---|---|---|---|---|
| 12 | 1 year | No (need 60 months) | Yes | FTC threshold |
| 24 | 2 years | No | Yes | |
| 36 | 3 years | No | Yes | |
| 48 | 4 years | No | Yes | Below 240-day threshold |
| 54 | 4 yrs 6 mths | Yes (rounds to 5) | Yes | Rounds up to 5 yrs |
| 56 | 4 yrs 8 mths | Yes (240 days) | Yes | Madras HC: 5 yrs |
| 60 | 5 years | Yes | Yes | Standard threshold |
| 72 | 6 years | Yes | Yes | |
| 84 | 7 years | Yes | Yes | |
| 120 | 10 years | Yes | Yes | |
| 180 | 15 years | Yes | Yes | |
| 240 | 20 years | Yes | Yes | Cap may apply |
The Month Rounding Rule — Explained
The Payment of Gratuity Act does not explicitly state a rounding rule for partial years. However, Section 4(2) says that service of more than 6 months shall be treated as a completed year. This is the standard interpretation used by most Labour Tribunals and the Madras High Court.
✅ Rounds Up (= 1 extra year)
- Exactly 6 months remaining after full years
- 7, 8, 9, 10, 11 months remaining
- Example: 4 yrs 7 mths = 5 years
❌ Does Not Round Up
- 1, 2, 3, 4, or 5 months remaining
- Example: 4 yrs 5 mths = 4 years
- Example: 7 yrs 3 mths = 7 years
Frequently Asked Questions
How do you calculate gratuity for service in months?
Gratuity is calculated primarily in years. To use months, first convert to years: divide total months by 12. For the remaining months, if 6 or more, round up to the next full year; if fewer than 6, round down. Then apply the standard formula: (Basic + DA) × 15 × Rounded Years ÷ 26. Example: 58 months = 4 years 10 months → rounds to 5 years.
What is the gratuity for 60 months of service?
60 months = exactly 5 years. Gratuity = (Basic + DA) × 15 × 5 ÷ 26. At ₹50,000 basic with no DA: ₹50,000 × 15 × 5 ÷ 26 = ₹1,44,231. This is the most common 5-year benchmark and the first point at which permanent employees qualify for gratuity.
What is the gratuity for 48 months (4 years)?
48 months = exactly 4 years. If you are a permanent employee, 4 years does NOT qualify for gratuity — the minimum is 5 years (or 4 years + 240 working days per the Madras HC ruling). If you are a fixed-term contract employee (as of November 2025), 4 years qualifies since the threshold is 1 year.
How is gratuity calculated for 54 months?
54 months = 4 years and 6 months. Since 6 months = exactly 6 months, the Madras HC rounding rule applies: 4 years 6 months rounds up to 5 years. Gratuity = (Basic + DA) × 15 × 5 ÷ 26. So 54 months effectively qualifies as 5 years for gratuity calculation.
Is 36 months (3 years) eligible for gratuity?
36 months = 3 years. For permanent employees, this does NOT qualify — the minimum is 5 years. For fixed-term contract employees (November 2025 onwards), 3 years qualifies fully since the threshold is just 1 year. The gratuity would be: (Basic + DA) × 15 × 3 ÷ 26.
How many months are needed for gratuity in India?
For permanent employees: minimum 60 months (5 years) of continuous service, or 57–59 months if the Madras HC 240-working-days interpretation applies. For fixed-term contract employees (from November 2025): minimum 12 months (1 year) is enough. For death/disablement: any number of months qualifies — gratuity is paid for actual service.