Gratuity Calculator
Estimate your gratuity payout under the Payment of Gratuity Act.
Free online gratuity calculator for India. Enter your last drawn monthly salary (Basic + DA) and years of service to estimate the gratuity you are entitled to under the Payment of Gratuity Act. Runs entirely in your browser.
How to use the Gratuity Calculator
- 01Enter your last drawn monthly salary (Basic + Dearness Allowance).
- 02Enter your total years of service (6+ months in the final year counts as a full year).
- 03See your estimated gratuity and whether it crosses the ₹20 lakh tax-free cap.
Frequently asked questions
Who is eligible for gratuity?
Under the Payment of Gratuity Act, an employee becomes eligible after completing 5 continuous years of service with the same employer. The 5-year rule is waived if service ends due to death or disablement.
How is gratuity calculated?
For employees covered by the Act, gratuity = (last drawn monthly salary × 15 × years of service) ÷ 26, where salary is Basic + DA and 26 represents the working days in a month. A period of 6 months or more in the last year is rounded up to a full year.
How much gratuity is tax-free?
For non-government employees the exemption is capped at ₹20,00,000 (₹20 lakh) over your lifetime. Any gratuity received above this cap is added to your income and taxed at your slab rate.