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Gratuity Calculator
Work out the gratuity you're owed. Enter your last drawn basic plus DA and your years of service, and the calculator applies the Payment of Gratuity Act formula, capped at ₹20 lakh.
Service details
₹
Gratuity payable—
Completed years counted—
Formula amount—
Statutory cap₹20,00,000
How it's calculated
Under the Payment of Gratuity Act, gratuity is your last drawn basic plus DA multiplied by 15/26 (fifteen days' wages for each year, on a 26-day month) times your completed years of service. Any part-year beyond six months is rounded up to a full year. The total is capped at ₹20 lakh.
Gratuity = (basic + DA) × 15 ÷ 26 × years. Minimum 5 years' service to qualify (waived on death or disablement).
Frequently asked questions
What if my firm isn't covered by the Act?
For non-covered employers the formula uses 15/30 and average of last 10 months' salary; this tool assumes the covered-employee 15/26 formula.
Does the 5-year rule always apply?
Yes for resignation or retirement, but it's waived if service ends due to death or disablement.
Is it fully tax-free?
Up to ₹20 lakh is exempt for covered employees; anything above is taxable.