Gratuity Calculator
Compute your gratuity entitlement using the Payment of Gratuity Act formula. Enter your last drawn basic salary, DA, and years of service to instantly know your gratuity amount.
Minimum 5 years for eligibility
Enter your salary and years of service to calculate gratuity.
Features
- Uses the official Payment of Gratuity Act formula
- Separate formula for Act-covered and non-Act employees
- Shows tax-exempt limit (₹20 lakh as per current rules)
- Instant calculation — no login or data submission
Frequently Asked Questions
What is gratuity?
Gratuity is a lump-sum payment made by an employer to an employee as a token of appreciation for services rendered. It is governed by the Payment of Gratuity Act, 1972 in India and is payable on resignation, retirement, or death after a minimum of 5 years of continuous service.
How is gratuity calculated?
For Act-covered employees: Gratuity = (Last Basic + DA) × 15/26 × Years of Service. For non-Act employees: Gratuity = (Last Basic + DA) × 15/30 × Years of Service. The multiplier 15/26 represents 15 days' wage in a 26-working-day month.
What is the minimum service period for gratuity?
An employee must complete at least 5 years of continuous service to be eligible for gratuity. However, if an employee dies or becomes disabled, gratuity is payable regardless of the service period.
Is gratuity taxable?
For government employees, gratuity is fully tax-exempt. For private employees covered under the Gratuity Act, gratuity up to ₹20 lakh is tax-exempt. Amounts above ₹20 lakh are taxed as per the applicable income tax slab.
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