Finance

Gratuity Calculator

Calculate gratuity amount for private and government employees under the Payment of Gratuity Act.

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Employment Type

Last Drawn Basic Salary (Monthly)

₹

DA as % of Basic (0 for most private employees)

Years of Service

Extra Months

Gratuity Amount

₹3,17,308

For 11 effective years of service

Last drawn (Basic + DA)₹50,000/month

Formula₹50,000 × 15/26 × 11

Tax-free portion (up to ₹20L)₹3,17,308

* For informational purposes only. Not financial or investment advice. Consult a certified financial advisor before making financial decisions.

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About this tool

How to use Gratuity Calculator

1Select employment type: covered or not covered under the Payment of Gratuity Act
2Enter last drawn basic salary and DA percentage
3Enter completed years and months of service
4View gratuity amount, tax-free portion (up to ₹20 lakh), and applicable formula

Frequently Asked Questions

When am I eligible for gratuity?

You are eligible for gratuity after completing 5 years of continuous service with the same employer (4 years 240 days for those working 6 days/week). It is payable on retirement, resignation, or death/disability.

What is the gratuity formula?

For Act-covered employees: Gratuity = (Basic + DA) × 15/26 × years of service. For non-covered employees: Gratuity = (Basic + DA) × 15/30 × years. The 15/26 formula uses 26 working days/month.

Is gratuity taxable?

Gratuity up to ₹20 lakh received from an employer covered under the Gratuity Act is fully tax-free. For non-covered employers, the tax-free limit is the least of ₹20 lakh, actual gratuity, or ½ month salary × years of service.