Gratuity Calculator

Last drawn monthly basic plus DA × 15 ÷ 26 × completed years of service, for employers covered by the Gratuity Act. With ₹50,000 and 10 years, that's ₹2,88,461.54. Part of a year over six months counts as a full year, so 9 years and 7 months is treated as 10 years.

Normally an employee who has completed five years of continuous service, or whose service ends earlier because of death or disability. Rules for fixed-term employees changed with the new labour codes, so check with your HR team about your own eligibility and how your years are counted.

For most private employees covered by the Act, the first ₹20 lakh received is tax-free, subject to the rules in force, and anything above is taxable. Government employees are fully exempt. Check the current limits with your CA, because tax rules can change with each Budget.

Many still pay gratuity, often using 15 ÷ 30 of monthly pay for each completed year of service. Untick the covered box in the calculator to see that figure. Your appointment letter or HR policy should explain how your employer calculates it. Ask HR for the policy.

Your last drawn monthly basic pay plus dearness allowance, not your gross or CTC. Allowances such as HRA, bonus and special allowance aren't included in the gratuity formula. Your payslip shows basic and DA separately, so take the figures from your latest one. Use monthly figures.

Because the Act treats a month as 26 working days, excluding four Sundays. Fifteen days' wages for each year of service is therefore 15 ÷ 26 of monthly pay. That's why the result is a little more than half a month's basic for each year of service.

No. The calculation happens in your browser, so your salary and service details aren't sent anywhere or stored. You can try different scenarios, such as staying another year, privately and as often as you like. Nothing is stored after you close the page, and there's no account, email address or sign-up needed to use it.

The usual eligibility condition is five years of continuous service, and courts and rules have treated close cases differently. If you're near five years, ask your HR team how your employer counts service, including notice period, before planning your exit date. Get the answer in writing.

Employers are expected to pay gratuity within a set period after it becomes payable, usually after you apply when leaving. Submit the gratuity form your HR team provides, and keep a copy. Delays can attract interest under the Act. Follow up politely if it's late.

Yes. The formula is a minimum for covered employers, and some companies pay more under their own policy. The tax-free limit still applies to the total received, so very generous gratuity may be partly taxable. Check your company's policy document for details. HR can explain the policy.

It's a one-time lump sum at the end of a job, alongside EPF and any pension. Add it to your estimate with the EPF and PPF calculators, but don't count on it for every job, because you only qualify after enough years with one employer.

Yes. Employers can estimate what they'll owe long-serving staff and plan for it. Businesses covered by the Act, generally those with ten or more employees, must pay gratuity to eligible employees, so it's worth budgeting in advance. Planning ahead avoids a cash crunch later. Budget yearly for it.

Yes. Enter extra months as well as years. Over six months in the final year counts as a full year for covered employers, which can noticeably increase the amount if you're close to completing another year. Enter them accurately for the best estimate. Check your joining date.

Yes. Enter your basic, DA and years of service on your phone and see the result immediately. It's handy when deciding when to resign or comparing an offer from another employer. No app is needed, and nothing you enter is uploaded or stored. Results appear instantly.

Yes. The gratuity calculator is free, with no sign-up and no limit. It's an estimate for planning; confirm the exact figure with your employer's HR team or your CA before making decisions based on it. Nothing you enter is stored, and there's no limit on how many scenarios you try.