Gratuity Calculator
Calculate your gratuity earnings under the Payment of Gratuity Act, 1972.
Estimated Gratuity Amount
₹1,44,231
✓ You are eligible for gratuity as you have completed the minimum requirement of 5 years of service.
How the Gratuity Calculator works
Gratuity is a lump sum an employer pays for long service, generally after 5 years. This calculator uses the standard formula to estimate the amount from your last drawn salary (basic + DA) and years of service.
For employees covered by the Payment of Gratuity Act, the formula uses 15 days' wages for each completed year, based on a 26-day month. The tax-exempt amount is capped (currently ₹20 lakh).
Gratuity formula
Gratuity = (15 × last salary × years of service) / 26
Last salary = basic + DA. Service beyond 6 months rounds up to a full year.
Frequently asked questions
Who is eligible for gratuity?+
Generally, employees who complete 5 continuous years with an employer (relaxed in cases of death or disability).
How is gratuity calculated?+
For covered employees: 15 days' salary (basic + DA) for each completed year of service, using a 26-day month, as in the formula above.
Is gratuity taxable?+
Gratuity is tax-exempt up to a ceiling (currently ₹20 lakh) for covered employees; amounts above that are taxable.
Does a partial year count?+
Service beyond 6 months in the final year is rounded up to a full year; less than 6 months is ignored.