Gratuity Calculator (India)
Work out the gratuity your employer owes you under India's Payment of Gratuity Act. Enter your last drawn monthly salary and your years of service to see the amount.
Basic pay plus dearness allowance, as per the Act.
Your result will appear here
Your gratuity amount
Formula under the Payment of Gratuity Act, 1972: gratuity = (15 ÷ 26) × last drawn monthly salary × completed years of service. The tax-free ceiling is ₹20 lakh; amounts above it may be taxable. Gratuity is generally payable after 5 years of continuous service (waived on death or disablement).
How to use
- Enter your last drawn monthly salary — basic pay plus dearness allowance.
- Enter your total completed years of service.
- Click Calculate Gratuity to see the amount payable.
Frequently asked questions
What is the gratuity formula in India?
Under the Payment of Gratuity Act, 1972, gratuity equals 15 days' wages for every completed year of service. Since a month is taken as 26 working days, the formula is (15 ÷ 26) × last drawn monthly salary × years of service.
When am I eligible for gratuity?
Generally after 5 years of continuous service with the same employer. The 5-year condition does not apply if employment ends because of death or disablement.
Is gratuity taxable?
Gratuity up to ₹20 lakh is tax-free for employees covered by the Payment of Gratuity Act. Any amount above that may be taxable, so check the current rules or a tax adviser.
What counts as salary for gratuity?
Your last drawn salary — basic pay plus dearness allowance. Other allowances and bonuses are normally not included. Use it as a gratuity calculator free — no signup, nothing to install.
Related searches: gratuity calculator india free, calculate gratuity online, gratuity amount calculator, gratuity calculator for employees, gratuity calculator free.