Gratuity Calculator

⚡ In shortEstimate the gratuity you are entitled to under the Payment of Gratuity Act 1972 — free and instant, for private-sector employees in India. For employees covered by the Act, gratuity = (15 ÷ 26) × last drawn monthly salary (Basic + DA) × number of completed years of service. A period of six months or more in your final year counts as a full year. The total gratuity is tax-exempt up to a statutory ceiling of Rs 20,00,000.

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How it is calculated

For employees covered by the Act, gratuity = (15 ÷ 26) × last drawn monthly salary (Basic + DA) × number of completed years of service. A period of six months or more in your final year counts as a full year. The total gratuity is tax-exempt up to a statutory ceiling of Rs 20,00,000.

Frequently asked questions

How many years do I need to be eligible for gratuity?

Generally five years of continuous service with the same employer. This condition is waived if employment ends due to death or disablement.

Is gratuity taxable?

Gratuity received is exempt from income tax up to the prescribed limit (Rs 20 lakh for those covered by the Act). Any amount above the limit is taxable.

Is the 15/26 formula the same for everyone?

It applies to employees covered by the Payment of Gratuity Act. Employees not covered, or government employees, may have a different basis. Verify your case with a professional.