Gratuity Calculator
Estimate your gratuity payout from your last drawn salary (basic plus DA) and your years of service.
Estimated gratuity
₹3.5 L
For 10 years of service
Breakdown
Illustrative estimate only. Gratuity is tax-exempt up to the statutory limit; confirm current rules and your eligibility.
How it's calculated
- 1Gratuity uses the formula: 15 divided by 26, multiplied by last drawn monthly salary (basic plus DA), multiplied by years of service.
- 2The 15/26 reflects 15 days of wages for each completed year, based on a 26-day month.
- 3A part-year over six months is usually counted as a full year.
- 4Gratuity is tax-exempt up to the statutory limit; amounts above it may be taxable.
Why use this
- Know the lump sum you can expect on leaving or retiring.
- Factor gratuity into a retirement plan.
- Explain the calculation clearly to a client.
- Download a branded PDF of the estimate.
Frequently asked questions
How is gratuity calculated in India?+
For employees covered by the Payment of Gratuity Act, gratuity is 15/26 multiplied by the last drawn monthly salary (basic plus dearness allowance) multiplied by the number of completed years of service. This calculator applies that formula.
How many years of service do I need?+
Gratuity is generally payable after five years of continuous service, with some exceptions such as death or disability. Enter your total years of service to see the estimated amount.
Is gratuity taxable?+
Gratuity is exempt from tax up to a statutory limit, and any amount above that limit may be taxable depending on your category. Confirm the current limit and your position with a tax professional.
What counts as salary for gratuity?+
For this formula, salary means basic pay plus dearness allowance, not your full CTC. Use that figure as the last drawn salary for an accurate estimate.
Is this financial advice?+
No. It is an illustrative estimate. Your actual gratuity depends on your employer's policy and the applicable rules.
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