Gratuity Calculator for Domestic Workers

Estimate gratuity for a domestic worker in India — a maid, cook, driver, or caregiver — using the same formula found in the Payment of Gratuity Act, 1972. Because most private households fall outside the Act, this page also explains exactly when the law applies, when it does not, and what to do instead when it does not.

✓ Free to use✓ Payment of Gratuity Act, 1972✓ Updated July 2026✓ State welfare board notes

Reviewed & accurate

✓ Payment of Gratuity Act, 1972

✓ Code on Social Security, 2020

✓ State welfare board rules

Last updated: July 2026

Domestic Worker Gratuity Calculator

15/26 formula · 5-year eligibility check · Instant INR result

Free
₹

Use total monthly wages actually paid. Domestic work usually has no separate "basic" component, so the full monthly wage is used.

Estimated gratuity

₹0

Enter dates and salary to calculate

A private household is not a "shop or establishment" under the Payment of Gratuity Act, 1972, so this figure is an estimate for a voluntary or contractual payment, not a statutory entitlement.

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Generate a formal demand letter, or check the full and final settlement rules that apply once employment ends.

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On this page

  1. 01Gratuity Calculator
  2. 02Who can use this calculator
  3. 03Who counts as a domestic worker
  4. 04Does the Gratuity Act apply?
  5. 05Eligibility rules
  6. 06Gratuity formula
  7. 07Worked examples
  8. 08State-wise welfare boards
  9. 09Frequently Asked Questions
  10. 10Methodology & references

Who Can Use This Calculator?

This calculator is built for three groups: domestic workers estimating what a fair end-of-service payment would look like, households that want to offer gratuity voluntarily and calculate it correctly, and workers employed through a placement agency or contractor that may itself be covered by the Payment of Gratuity Act, 1972.

It is not a substitute for checking your specific employment arrangement. The result changes depending on whether you work directly for a household, through an agency, or under a registered state welfare scheme, which is why the calculator asks for that context first.

Who Is Considered a Domestic Worker?

A domestic worker is someone employed to do household work inside a private residence, including cooking, cleaning, childcare, elder care, driving, or gardening. This covers full-time live-in staff, part-time daily-wage help, and workers placed by an agency to work in a home.

India does not yet have a single central law that defines and regulates domestic work the way the Payment of Gratuity Act regulates factory and shop employment. Recognition and protection instead come from a mix of state welfare board schemes, minimum wage notifications in some states, and ordinary contract law.

Does the Payment of Gratuity Act Apply?

This is the single most important question before using the number this calculator produces.

Employment situationCovered by the Act?Why
Employed directly by one householdNoA private residence is not a "shop or establishment" under Section 1(3) of the Act, and there is no employee-count threshold to apply.
Employed through an agency with 10+ staffPossiblyThe agency itself may meet the establishment and employee-count criteria, making the agency the liable employer.
Registered with a state welfare boardNo, but board rules may applyWelfare boards run separate schemes with their own eligibility rules and benefit formulas, distinct from the Act.
Employed by a large housekeeping company placed in homesPossiblyDepends on whether the company itself has 10 or more employees on its own payroll.

In practice

Most domestic workers in India employed directly by a family have no statutory right to gratuity. Where families do pay it, it is a voluntary or contractually agreed benefit, and this calculator helps both sides arrive at a fair, consistent number using the same formula the law uses elsewhere.

Eligibility Rules Used By This Calculator

✓ 5 years of continuous service

The standard benchmark, taken from Section 4(1) of the Act, is 5 years of continuous service before gratuity applies.

✓ Death or disablement exception

The 5-year rule does not apply if employment ends because the worker dies or becomes disabled and unable to continue working.

✓ Rounding for the final year

Service of 6 months or more beyond a completed year is treated as a full additional year, matching the Act's rounding convention.

✓ Last drawn wage

The calculation uses the most recent monthly salary, not an average across the employment period.

Gratuity Formula

Where gratuity applies, whether by law for an agency employer or by agreement for a household, the formula is the same one used across India for monthly-rated employees.

Gratuity = (15 × Last drawn monthly salary × Years of service) ÷ 26

The 26 represents working days in a month used by the Act; 15 represents half a month's wage per year of service.

Quick-reference table

Years of serviceAt ₹10,000/month salaryAt ₹15,000/month salary
5 years₹28,846₹43,269
7 years₹40,385₹60,577
10 years₹57,692₹86,538
15 years₹86,538₹129,808

Step-by-Step Calculation Examples

Three common scenarios, showing when the standard formula applies and when it does not.

Example 1 — Cook, 6 years, household employer

Salary: ₹9,000/month6 years
  1. 1Completed years = 6 (no rounding needed)
  2. 2Gratuity = (15 × 9,000 × 6) ÷ 26
  3. 3= 810,000 ÷ 26

This is a voluntary estimate since a single household is not covered by the Act. Many families use this formula as a fair benchmark even though it is not mandatory.

₹31,154

Example 2 — Housemaid, 4 years 8 months, household employer

Salary: ₹7,500/month4 years 8 months
  1. 14 years 8 months is under the 5-year benchmark
  2. 2No gratuity estimate applies under the standard 5-year rule

If the employment ended due to the worker's death or a disabling injury, the 5-year rule would not apply.

Not eligible (under 5 years)

Example 3 — Caregiver placed by a 40-staff agency, 7 years

Salary: ₹15,000/month7 years
  1. 1Completed years = 7
  2. 2Agency has 10+ employees, so the Act likely applies to the agency
  3. 3Gratuity = (15 × 15,000 × 7) ÷ 26
  4. 4= 1,575,000 ÷ 26

The gratuity liability sits with the agency as the employer of record, not the household where the caregiver worked.

₹60,577

State-Wise Domestic Workers Welfare Boards

A handful of states run dedicated welfare boards for registered domestic workers. Coverage, contribution requirements, and benefits differ by state and are set independently of the Payment of Gratuity Act.

StateSchemeNotes
KeralaKerala Domestic Workers Welfare Fund BoardRegistered workers can access welfare benefits funded through worker and employer contributions. Benefits and terms are set by the board, separate from the Gratuity Act.
Tamil NaduTamil Nadu Manual Workers (domestic workers scheme)Domestic workers can register under the state's manual workers welfare scheme for benefits such as accident and family assistance.
MaharashtraMaharashtra domestic workers welfare initiativesRegistration and welfare schemes exist at the state level; coverage and benefit amounts should be confirmed with the local labour department.
Other statesVariesCoverage is uneven across India. Where no welfare board exists, gratuity for domestic work remains a matter of individual agreement between the worker and the household or agency.

Frequently Asked Questions

Are domestic workers covered under the Payment of Gratuity Act, 1972?▾
Generally no. The Act applies to factories, mines, plantations, ports, railway companies, and shops or establishments with 10 or more employees. A private household employing a maid, cook, or caregiver is not a shop or establishment under the Act, so most domestic workers have no statutory right to gratuity from the family that employs them.
When does the Payment of Gratuity Act apply to domestic work?▾
If a domestic worker is employed through a placement agency, housekeeping company, or contractor that itself has 10 or more employees, that employer may fall within the Act. The gratuity obligation in that case sits with the registered employer, not the household where the worker is placed.
How is gratuity calculated for domestic workers?▾
Where gratuity is paid, whether voluntarily by a household or under the Act by a registered employer, the standard formula is (15 × last drawn monthly salary × completed years of service) ÷ 26. Service of 6 months or more beyond a completed year is rounded up to the next year.
Is there a minimum service period for gratuity?▾
The Act requires 5 years of continuous service, and this benchmark is commonly followed even for voluntary payments outside the Act. The 5-year minimum does not apply if employment ends due to death or disablement.
Do state domestic workers welfare boards pay gratuity?▾
Some states, including Kerala and Tamil Nadu, run welfare boards for registered domestic workers that provide benefits such as pension, medical assistance, or a lump-sum payment on retirement. These schemes are separate from the Payment of Gratuity Act and follow their own rules, contribution requirements, and payout formulas set by the state.
Can a family voluntarily agree to pay gratuity to household help?▾
Yes. Nothing prevents a household from agreeing in writing to pay gratuity or a service-end bonus, whether following the Act's 15/26 formula or a different arrangement. A written agreement makes the terms clear and enforceable as a contract, even though it is not required by the Act.
What salary is used to calculate a domestic worker's gratuity?▾
The last drawn monthly wage actually paid to the worker. Domestic work typically has no separate basic-pay and allowance split, so the full monthly salary is used, unlike gratuity calculations for salaried employees under the Act.
Does the Code on Social Security, 2020 change gratuity rules for domestic workers?▾
The Code on Social Security, 2020 sets out a framework for extending social security to unorganised and gig workers, and reduces the qualifying period for fixed-term employees. As of 2026, the central government has not notified a scheme that brings domestic workers under a mandatory gratuity requirement, so the position for household employment remains largely unchanged.
What can a domestic worker do if a household refuses to pay agreed gratuity?▾
If gratuity was agreed in writing or by established practice, the worker can send a formal demand letter, and if unresolved, raise the matter with the local labour department or a registered domestic workers welfare board where one exists. Because most household employment falls outside the Act, this is a contractual claim rather than a statutory one, so the written agreement or proof of the arrangement matters.

Methodology & References

Legal references

Official sources

Methodology

This calculator applies the formula in Section 4(2) of the Payment of Gratuity Act, 1972: (15 × last drawn monthly salary × completed years of service) ÷ 26. Service is calculated from the joining date to the last working day, with 6 months or more beyond a completed year rounded up. The tool does not itself determine whether the Act legally applies to your situation; that depends on the employment context selected, which is explained alongside the result.

Last reviewed: July 2026 by the OfficeDraft HR and legal team. Disclaimer: This page provides general information, not legal advice. For a specific dispute or an unusual employment arrangement, consult a labour law professional or the relevant state labour department.

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Legal Disclaimer

This page and calculator are for general information only and do not constitute legal advice. The Payment of Gratuity Act, 1972 generally does not cover domestic workers employed directly by a private household. Figures produced by this calculator for household employment represent a voluntary estimate based on the Act's formula, not a statutory entitlement. Rules for agency employment, state welfare boards, and future changes under the Code on Social Security, 2020 may alter this position. Confirm your specific situation with a qualified labour law professional or your state labour department.

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