Gratuity calculator
Find the gratuity you’ve earned. Enter your last drawn salary (basic + DA) and years of service to see the gratuity payable under the Payment of Gratuity Act - tax-free up to ₹20 lakh.
Gratuity details
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Gratuity is payable after 5 years of continuous service. A part-year of 6 months or more counts as a full year.
Gratuity up to ₹20,00,000 is fully tax-exempt for private employees, so this entire amount is tax-free.
10 yrs
Service counted
≥6 months rounds up
₹28.85K
Per year
average accrual
Gratuity payable
₹2,88,462
Your reward for tenure
15 days’ pay for every year
Gratuity is a lump-sum thank-you for long service, paid when you leave after five or more years. It’s built on a simple statutory formula and is tax-free up to ₹20 lakh.
Gratuity = (15 ÷ 26) × salary × years
- 1
Serve five years
Eligibility begins after five years of continuous service (waived on death/disability).
- 2
Take basic + DA
The formula uses your last drawn basic salary plus dearness allowance only.
- 3
15 days a year
15/26 gives 15 days’ wages for each completed year on a 26-day month.
- 4
Tax-free to ₹20L
The payout is exempt up to ₹20 lakh; anything above is taxable.
Questions
Frequently asked
For employees covered by the Payment of Gratuity Act, gratuity = (15 ÷ 26) × last drawn monthly salary (basic + dearness allowance) × years of service. The 15/26 represents 15 days’ wages for each completed year, based on a 26-day working month. So ₹50,000 monthly salary over 10 years gives (15/26) × 50,000 × 10 ≈ ₹2,88,462.
You become eligible after completing five years of continuous service with the same employer. The five-year condition is waived if service ends due to death or disablement. Gratuity is payable on resignation, retirement, superannuation, or death.
A part-year of six months or more counts as a full year; less than six months is dropped. For example, 10 years and 7 months counts as 11 years, while 10 years and 4 months counts as 10. This calculator rounds your entered service to the nearest whole year on that basis.
Gratuity is tax-exempt up to a lifetime limit of ₹20,00,000 for private-sector employees covered by the Act. Any amount above that is taxable as salary. Government employees receive gratuity fully tax-free. This calculator caps the payable figure at the ₹20 lakh statutory limit.
Gratuity uses your last drawn basic salary plus dearness allowance (DA), not gross salary. Allowances like HRA, bonus and special allowance are excluded. Enter only basic + DA for an accurate figure.