Gratuity Calculator
Estimate the gratuity you're owed after five or more years of service: 15 days' pay for every completed year, on your last drawn basic + DA. Handles both Act-covered and non-covered employers and shows the ₹20 lakh tax-free ceiling.
Last drawn salary (basic + DA, monthly) (₹)
Employer covered by the Gratuity Act?Applies to firms with 10+ employees — most are covered.
Completed years of service
Extra months (0–11)6 months or more counts as a full extra year.
Gratuity payable
₹2,30,769
8 years of service counted
Tax-free limit
₹20,00,000
Your gratuity is within the exempt limit
Covered employees: gratuity = 15 ÷ 26 × last salary × years. Non-covered: 15 ÷ 30 × average of last 10 months' salary × completed years. The ₹20,00,000 ceiling is the lifetime tax-free limit across employers. Confirm the exact amount with your employer. Nothing is uploaded.
How to use it
- Enter your last drawn monthly basic pay plus dearness allowance.
- Enter completed years of service and any extra months.
- Choose whether your employer is covered by the Gratuity Act (firms with 10+ employees are).
- See the gratuity payable and how it compares with the ₹20 lakh exempt limit.
FAQ
- When am I eligible for gratuity?
- After 5 years of continuous service with the same employer. The 5-year rule is waived if service ends due to death or disablement.
- What's the formula?
- For a covered employer: (15 × last drawn salary × years of service) ÷ 26, where 6+ months in the final year rounds up to a full year. For a non-covered employer it's ÷ 30 and only completed years count.
- Is gratuity taxable?
- Gratuity up to ₹20,00,000 over your career is tax-free. Anything above that is taxed as salary income.
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Free to use, no sign-up. Calculations run in your browser — nothing you type is sent to a server. These tools are for general information only, not professional advice. See the full tool list.