Gratuity Calculator (India)
Estimate your gratuity amount based on your last drawn salary and years of service.
Note
Enter valid inputs to see results.
About Gratuity Calculator India
What is Gratuity?
Gratuity is a monetary benefit paid by employers to employees as a gesture of gratitude for their services. Under the Payment of Gratuity Act, 1972, it's mandatory for organizations with 10 or more employees to pay gratuity to employees who have completed at least 5 years of continuous service. Our gratuity calculator India helps you estimate this amount accurately based on the standard formula.
Gratuity Calculation Formula
The gratuity amount is calculated using the formula:
Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26
Where Last Drawn Salary includes Basic Salary plus Dearness Allowance (DA), and 15 days wages are considered for each completed year of service. The division by 26 represents the working days in a month.
Key Features of Our Calculator
- Instant gratuity calculation based on latest salary and service years
- Automatic rounding of service years (6 months or more counted as full year)
- Compliance with Payment of Gratuity Act, 1972
- User-friendly interface with real-time results
- Free online tool available 24/7
Who Can Use This Calculator?
- Employees planning to leave their job and checking gratuity eligibility
- HR professionals calculating gratuity for retiring employees
- Business owners estimating gratuity liabilities
- Financial advisors helping clients with retirement planning
- Anyone wanting to understand their gratuity entitlement under Indian labor laws
Important Notes
- Minimum 5 years of continuous service required for gratuity eligibility
- Service period less than 6 months is ignored, 6 months or more counted as full year
- Maximum gratuity amount is tax-free up to ₹20 lakhs as per current tax laws
- Actual gratuity may vary based on company policy and specific employment terms
- For exact calculations, consult your HR department or financial advisor
Frequently Asked Questions
Is gratuity taxable?
Gratuity up to ₹20 lakhs is tax-free for government employees. For private sector employees, the least of actual gratuity, ₹20 lakhs, or 15 days salary for each completed year is tax-free.
Can I get gratuity before 5 years?
Generally no, except in cases of death or disability where the 5-year condition is waived.
What is included in last drawn salary?
Basic salary plus Dearness Allowance (DA). Other allowances like HRA, medical allowance are not included.