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Gratuity Calculator

Calculate your eligible gratuity amount upon leaving a company. Instantly view your tax-free and taxable gratuity portions.

work Employment Details

Covered uses 26 working days. Uncovered uses 30.

Monthly Basic Salary + Dearness Allowance.

Total Gratuity

₹0

Tax-Free Amount

₹0

Exempted up to 20L

Taxable Amount

₹0

Added to Salary Income

Calculation Breakdown

The calculation of Gratuity depends on whether the employer is covered under the Payment of Gratuity Act, 1972.

Active Formula:

(15 / 26) × Last Drawn Salary × Years of Service

Since you are covered under the Act, a month is considered to have 26 working days. You receive 15 days of salary for every completed year of service.

How Does a Gratuity Calculator Work?

Gratuity is a financial reward provided by an employer to an employee in appreciation of their past service. In India, it is governed by the Payment of Gratuity Act, 1972. This calculator quickly determines your eligible payout when leaving an organization.

The 5-Year Rule

To be eligible for gratuity, an employee must have completed at least 5 years of continuous service with the same employer. (There are exceptions to this rule in the case of death or disablement of the employee).

Rounding Off Years

If you are covered under the Gratuity Act, any service exceeding 6 months is rounded off to the next full year. For example, if you have worked for 5 years and 7 months, your tenure for calculation is considered as 6 years. If you are not covered, only completed years are counted.

Frequently Asked Questions

Is my Gratuity fully tax-free? expand_more
Gratuity is tax-free up to a lifetime limit of ₹20 Lakhs. If the gratuity you receive exceeds this amount, the surplus will be added to your income and taxed according to your applicable income tax slab.
What is included in "Basic Salary"? expand_more
For the calculation of Gratuity, your salary consists of your Basic Salary and Dearness Allowance (DA). It does not include HRA, bonuses, commissions, or any other special allowances.