Gratuity Calculator for Indian Employees
Calculate your gratuity amount based on last drawn salary and years of service. Know your tax-free limit and eligibility in seconds.
What it does
Estimates gratuity based on salary and service length
Who it is for
Employees planning resignation, retirement, or job change
What you get
Gratuity amount, tax-free portion, and eligibility status
How to use this tool
Enter last drawn salary
Monthly basic salary + dearness allowance (DA) as on your last working month
Enter years of service
Completed years — round up to next year if the last year had 6 or more months served
Get your estimate
Total gratuity, tax-free portion, eligibility status, and formula breakdown shown
What you'll need
Keep these details ready before you start.
This keeps the flow quick on mobile and desktop, and helps you finish the form in one pass.
Enter your last drawn monthly basic salary plus dearness allowance, not annual CTC
Round up if last year had 6+ months (e.g. 10 yrs 7 months → enter 11)
How this tool helps
Official Act formula used
Calculates using (15 × last salary × years) ÷ 26 as prescribed by the Payment of Gratuity Act, 1972.
₹20L tax-free limit shown
Clearly separates the tax-free portion from any taxable amount, so there are no surprises when you receive the payment.
Eligibility check included
Shows whether the 5-year minimum service requirement is met, with a note on exceptions for death or disability.
About this tool
Understand where it fits into your salary workflow.
Calculate your gratuity amount based on last drawn salary and years of service. Know your tax-free limit and eligibility in seconds.
Gratuity is a lump sum benefit paid by employers to employees as a token of appreciation for their service. Under the Payment of Gratuity Act, 1972, employees who have completed at least 5 years of continuous service are entitled to receive gratuity at the time of resignation, retirement, or superannuation.
The gratuity formula for employees covered under the Act is: Gratuity = (15 x Last Drawn Salary x Years of Service) / 26. Here, "Last Drawn Salary" means basic salary plus dearness allowance, "15" represents 15 days' wages, and "26" represents the number of working days in a month.
The maximum tax-free gratuity for non-government employees is Rs. 20,00,000 as per current rules. Any amount exceeding this limit is taxable at your applicable income tax slab rate. For government employees, the entire gratuity amount received is exempt from tax.
Note on eligibility: The 5-year service requirement is relaxed in cases of death or disability of the employee. If an employee's service is 6 months or more in the last year, it is rounded up to the next full year. Our calculator uses the standard formula and shows both the gross gratuity amount and the tax-free portion.