Gratuity Calculator
Calculate gratuity as per the Payment of Gratuity Act 1972.
Input Values
₹
Yrs
Results
Enter values to see results.
⚠️ Results are indicative only. Consult a qualified professional before making any decisions.
What is this Calculator?
The Gratuity Calculator computes the gratuity amount payable to an employee as per the Payment of Gratuity Act, 1972. Gratuity is a token of appreciation from the employer for long years of service and is payable when an employee leaves after completing 5 or more years.
How to Use
1
Enter Last Drawn Basic Salary: Enter your last drawn monthly basic + DA salary.
2
Enter Years of Service: Enter the total number of years you have worked with the employer.
3
View Results: See your gratuity amount payable.
Frequently Asked Questions
Gratuity is a lump sum payment made by an employer to an employee as a reward for long service. It is governed by the Payment of Gratuity Act, 1972 and is payable on retirement, resignation, or death.
Gratuity = (Last Drawn Basic Salary × 15 × Years of Service) ÷ 26. The "15" represents 15 days of salary per year of service, and "26" represents the number of working days in a month.
You are eligible for gratuity if you have completed at least 5 years of continuous service with the same employer. In case of death or disability, the 5-year condition is waived.
Gratuity is tax-free up to ₹20 lakh for employees covered under the Gratuity Act. For government employees, the entire gratuity is tax-exempt.
Under the Payment of Gratuity Act, the maximum gratuity payable is ₹20 lakh. This limit was revised upward from ₹10 lakh.
Generally, no. But in case of death or total disability, gratuity is payable even before 5 years. Some companies have their own gratuity policies that may differ.