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Gratuity Calculator

Employee gratuity calculation. Fast, accurate, and completely free.

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Minimum 5 completed years of service required by law

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Estimated Gratuity Payable
₹4,61,538
Lump-Sum Retirement Benefit

Legal Eligibility

Eligible. You have completed the mandatory 5 years of continuous service with your employer.

Mathematical Formula

G = \frac{15 \times S \times Y}{26}

G = Gratuity Amount

S = Last drawn basic salary + dearness allowance (DA)

Y = Completed years of service (rounded off: ≥6 months is rounded up to 1 year)

26 = Number of working days in a month

How to Use this Calculator

  1. Enter your last drawn monthly Basic Salary + Dearness Allowance (DA).

  2. Input your completed years of service with the employer.

  3. View your calculated gratuity payout.

What is Gratuity in India?

Gratuity is a lump-sum monetary benefit paid by an employer to an employee as a token of appreciation for their continuous service. It is governed by the Payment of Gratuity Act, 1972. To qualify for gratuity, an employee must have completed at least 5 years of continuous service with an organization that has 10 or more employees.

Frequently Asked Questions (FAQ)

Is gratuity taxable in India?

For government employees, gratuity is fully tax-exempt. For non-government employees, gratuity is tax-exempt up to a maximum limit of ₹20 lakhs (increased from ₹10L in recent amendments).

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