Gratuity Calculator
Work out the gratuity you could receive when you leave a job, from your last salary and years of service.
Frequently asked questions
How is gratuity calculated?
For employers covered by the Payment of Gratuity Act: 15 × last drawn salary × years of service ÷ 26. If not covered: 15 × last drawn salary × completed years ÷ 30. Salary means basic pay plus dearness allowance.
How are part years counted?
Under the Act, service of more than six months in the final year is rounded up to a full year. For employers not covered, only completed years count.
When am I eligible?
Usually after 5 years of continuous service with the same employer. The 5-year condition does not apply on death or disablement, and rules for fixed-term employees can differ.
Is gratuity taxable?
For private-sector employees, gratuity is tax-free up to ₹20 lakh over their working life. Government employees' gratuity is fully tax-free.
Disclaimer: This calculator is for illustration only. Results are estimates based on the rates and assumptions you enter; actual interest rates, returns, contribution rules and tax treatment are set by the government and the scheme regulator and can change.
This is not tax or retirement advice. Please consult a financial advisor before making decisions.