Calculate your gratuity entitlement as per the Payment of Gratuity Act 1972. Enter your last drawn salary and years of service for the exact amount.
Fill in the details and
your result appears here.
Use only Basic salary plus Dearness Allowance — not gross salary or CTC.
Minimum 5 years of continuous service required to be eligible for gratuity.
Organisations with 10 or more employees are covered under the Gratuity Act.
Two formulas apply depending on coverage under the Gratuity Act:
The divisor 26 represents working days in a month (excluding 4 Sundays). Gratuity is tax-free up to ₹20 lakh for private employees as of FY 2023-24.
5 years of continuous service. If an employee dies or is disabled, gratuity is paid regardless of service duration.
For private sector employees, gratuity up to ₹20 lakh is fully tax-free. Amount above ₹20L is taxable as salary income. Government employees get full exemption.
No. Gratuity is calculated only on Basic Salary + Dearness Allowance (DA). HRA, bonus, and other allowances are excluded.
On retirement, resignation (after 5 years), death, or disability. It must be paid within 30 days of becoming due.
Gratuity = (Last drawn salary × 15 × years of service) / 26. Last salary includes basic + DA. Minimum service is 5 years. Maximum tax-free gratuity is Rs 20 lakh.