Gratuity Calculator

Include year if service > 6 months (e.g., 5 yrs 7 months = 6 years)

Estimated Gratuity Amount ₹ 1,44,231
Calculation based on 15/26 formula.

What is Gratuity?

Gratuity is a monetary benefit given by an employer to an employee for services rendered to the organization. It is usually paid at the time of retirement, resignation, or layoff, provided the employee has completed at least 5 years of service.

Gratuity Calculation Formula

Covered under Gratuity Act

Formula: (15 × Last Drawn Salary × Tenure) / 26

Last Drawn Salary = Basic + DA
(1 month is treated as 26 working days)

Not Covered under Gratuity Act

Formula: (15 × Last Drawn Salary × Tenure) / 30

Last Drawn Salary = Basic + DA
(1 month is treated as 30 days)

Frequently Asked Questions

An employee must complete at least 5 years of continuous service with the same employer to be eligible for gratuity. However, in case of death or disablement, the 5-year rule does not apply.
For government employees, gratuity is fully tax-free. For private sector employees covered under the Act, the least of the following is exempt: 1. Actual Gratuity received 2. ₹20 Lakhs 3. Calculated Gratuity amount