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Gratuity Calculator

Find out the gratuity you're entitled to when you leave your job.

Your service

For employees covered under the Gratuity Act

Basic salary + dearness allowance (DA).

yrs

Gratuity is usually payable after 5 years of continuous service.

Gratuity payable

₹3,46,154

Formula: (15 ÷ 26) × last salary × years of service. The 26 represents working days in a month, and 15 is half a month's wages for each completed year.
Monthly salary (basic + DA)₹60,000
Years of service10 years
Gratuity amount₹3,46,154

Gratuity is a lump sum an employer pays you as a thank-you for long service, usually when you resign or retire after at least five years. In India it's governed by the Payment of Gratuity Act. This calculator shows what you're owed based on your salary and tenure.

How gratuity is calculated

For employees covered by the Gratuity Act, the formula is:

Gratuity = (15 / 26) × last salary × years of service

The last salary is your most recent basic pay plus dearness allowance. 26 is the assumed number of working days in a month, and 15represents 15 days' wages for each completed year of service.

Frequently asked questions

When am I eligible for gratuity?+

Generally after completing five years of continuous service with the same employer. Exceptions apply in cases of death or disability, where the five-year rule is waived.

Is gratuity taxable?+

For covered employees, gratuity up to ₹20 lakh is tax-free. Amounts above that ceiling may be taxable depending on your category — this calculator caps at ₹20 lakh.

How are part-years counted?+

Service beyond six months in the final year is usually rounded up to a full year. For example, 10 years and 7 months counts as 11 years.

Does it include bonuses or HRA?+

No. Only basic salary and dearness allowance are used in the calculation — not HRA, bonuses or other allowances.

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