Pension & Gratuity Calculator
Calculate pension corpus and gratuity benefits for Indian employees
₹
₹
Pension & Gratuity Breakdown
₹50,000
₹0
₹0
₹0
₹0
20
₹0
📌 Important Notes
- Gratuity: Calculated as 15 days salary per year of service (₹½ million cap)
- Pension: Based on basic salary + DA at time of retirement
- Normal Pension: 50% of (Basic + DA) after 10 years of service
- Calculation assumes: No salary increases after retirement
- Actual pension subject to government regulations and service terms
- This is an estimate; consult HR/Payroll for exact calculations
📐 Pension & Gratuity Formula
G
=
min
(
15
×
S
×
Y
÷
26
,
₹50,00,000
)
P
=
B
×
TierFactor
×
(
1
+
DA
)
G = gratuity amount
S = last drawn basic salary
Y = completed years of service
P = pension amount
B = pension base salary
DA = dearness allowance rate
Shows capped gratuity and tier-adjusted pension in a formula-first pattern.
❓ Pension Calculator FAQs
Who is eligible for gratuity benefits?+
Typically, gratuity applies after completing the minimum service period under labor rules or employer policy. Eligibility can vary by organization and employment type.
What are pension tiers and why do they matter?+
Pension tiers represent different contribution or benefit structures. Higher tiers may involve larger contributions but can provide better retirement income.
How does DA integration affect pension?+
When dearness allowance is integrated, pension calculations may be linked to inflation-related adjustments, improving long-term income stability.
What is a vesting period in pension plans?+
Vesting period is the minimum duration required before you gain rights to employer-contributed pension benefits. Leaving earlier may reduce or forfeit some benefits.