Gratuity Calculator

Estimate the gratuity amount payable on retirement, resignation, or separation.

Last Drawn Basic + DA (monthly)

₹

₹5K₹5L

Years of Service

10 yr

0 5 10 20 30 40 yr

Employee Type

Organisations with 10+ employees. Uses the Payment of Gratuity Act 1972 formula.

Gratuity Amount ₹2,88,462

Monthly Salary (Basic + DA) ₹50,000

Years of Service 10 yrs

Formula Used Act

Tax Exemption Limit ₹20,00,000

Taxable Gratuity ₹0

Tax-free

Gratuity = \frac{Salary \times 15 \times N}{26}

Salary	Last drawn Basic + DA (monthly)
15	15 days wages for each completed year
N	Number of completed years of service (6+ months rounded up)
26	Working days in a month (statutory)

Minimum 5 years of continuous service required. Maximum payout capped at ₹20 lakh (tax-exempt).

Gratuity = \frac{Salary \times 15 \times N}{30}

Salary	Last drawn Basic + DA (monthly)
15	15 days wages for each completed year
N	Number of completed years of service (half-year not rounded up)
30	Calendar days used as divisor for non-Act employees

Used by organisations not covered under the Payment of Gratuity Act 1972 (fewer than 10 employees).

Minimum Service

5 continuous years of service required to be eligible (except in case of death or disability).

Tax Exemption

Up to ₹20 lakh is tax-free for private-sector employees under Section 10(10) of the Income Tax Act.

Rounding Rule (Act)

If service includes more than 6 months in the last year, it is rounded up to the next full year.

Government Employees

Central and state government employees are covered under separate CCS (Pension) Rules, often more generous.