Gratuity Calculator
Enter your last basic salary (+DA) and years worked — get your gratuity amount instantly using the Gratuity Act formula.
How to use — Gratuity Calculator
- Enter your last drawn monthly basic salary + DA (not gross, only basic+DA).
- Enter how many years you worked at the company.
- Click Calculate — see the amount per the Gratuity Act formula.
FAQ
What is the gratuity formula?
Gratuity = (15 ÷ 26) × last drawn (basic + DA) × years of service. 26 = working days in a month, 15 = 15 days' salary per year. E.g. ₹50,000 basic × 10 years = ₹2,88,462.
When is gratuity paid?
After 5 years of continuous service — on resignation, retirement, or termination. The 5-year condition doesn't apply in case of death/disability.
What is the 6-month rule?
If the service fraction exceeds 6 months, it counts as a full year — 7 years 8 months = 8 years. If under 6 months, it's ignored — 7 years 4 months = 7 years.
Is gratuity taxed?
For private employees, up to ₹20 lakh is tax-free over a lifetime (covered by the Gratuity Act). Government employees' entire gratuity is tax-free. Amounts above this are taxable.