Gratuity Calculator India
Calculate gratuity entitlement for private and government employees. 5-year eligibility check, tax-free limit.
Disclaimer: Tax calculations are estimates based on current slabs and may not reflect all deductions or surcharges applicable to your situation. Consult a qualified Chartered Accountant (CA) before filing your returns.
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About Gratuity Calculator India 2026
Calculate exact gratuity amount under Payment of Gratuity Act 1972. Formula: (Last Drawn Salary × 15/26 × Years of Service). Government employee formula differs. Shows tax-free limit of ₹20 lakh (as of 2024 amendment) and taxable portion.
Gratuity is a statutory lump-sum benefit paid by an employer to an employee who completes 5 or more years of continuous service, governed by the Payment of Gratuity Act, 1972. The formula is fixed by law: (Last Drawn Basic Salary + DA) × 15/26 × Number of Years of Service, where 15/26 represents 15 days of wages per year based on a 26-day working month. Gratuity received up to ₹20 lakh is fully tax-exempt for employees covered under the Act, which makes it a meaningful, often-overlooked component of total retirement or resignation payout that's frequently miscalculated by employees relying on rough estimates rather than the exact statutory formula. This calculator applies the precise legal formula to your salary and tenure.
How to use
- Enter your figures in the input fields — the result recalculates instantly as you type, no submit button needed.
- Double-check which financial year or rate the tool is using, shown near the result, since tax and interest rates change periodically.
- Use the "Next step" workflow links below to move into a related calculation, like comparing this result against another instrument.
- Share your result via WhatsApp or Twitter using the buttons above if you need to send it to someone else.
- Everything is calculated locally in your browser — your financial figures are never sent to any server.
Tool details
⚡ Next step — complete your workflow
Expert note — India 2026
Minimum 5 years continuous service required. Part year ≥ 6 months counts as full year. Tax-free limit: ₹20 lakh. Gratuity above ₹20 lakh is taxable as salary income.
Frequently asked questions
Gratuity formula for private employees?
Gratuity = (Basic + DA) × 15/26 × Completed Years. Example: ₹50,000 basic, 10 years: 50,000 × 15/26 × 10 = ₹2,88,461.
Is gratuity paid before 5 years?
No, minimum 5 years of continuous service is required. Exception: in case of death or disability, gratuity is paid regardless of service duration.
Is gratuity taxable?
Exempt up to ₹20 lakh for private employees covered under Gratuity Act. Amount above ₹20 lakh is taxable as salary.
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