Free tool
Gratuity Calculator (India)
Gratuity is a lump sum your employer pays when you leave after long service. Under the Payment of Gratuity Act, it is 15/26 of your last drawn Basic + DA for each completed year. Enter your details to see the amount payable.
How it works
- Enter your last drawn monthly Basic + DA (not full CTC).
- Enter your years of service - 6 months or more rounds up to a full year.
- See the gratuity payable under the standard formula.
Example: with Rs. 25,000 Basic + DA and 6 years of service, gratuity is 15/26 x 25,000 x 6, about Rs. 86,538.
Common questions
When am I eligible for gratuity?
Generally after 5 years of continuous service with the same employer. The 5-year rule does not apply in cases of death or disablement.
Is gratuity taxable?
For most private-sector employees, gratuity up to Rs. 20 lakh is tax-exempt. Amounts above that are taxed as income.
My company is not covered by the Act - what changes?
The formula becomes 15/30 (half month) instead of 15/26 per year. Most registered companies with 10+ employees are covered by the Act.