Gratuity Calculator

For employees covered by the Payment of Gratuity Act, gratuity = last drawn salary (basic + dearness allowance) × 15/26 × years of service. The 15/26 represents 15 days of wages for each completed year, based on a 26-day month.

You generally become eligible after completing 5 continuous years with an employer. It is paid on resignation, retirement, or in some cases earlier (such as death or disablement).

A year is counted as complete if you have worked more than 6 months in it. For example, 7 years 8 months is counted as 8 years; 7 years 4 months is counted as 7 years.

Gratuity up to ₹20 lakh is tax-free for employees covered by the Act. Amounts above ₹20 lakh are taxable. This calculator shows the gratuity amount before any tax.