Gratuity Calculator
Estimate your gratuity using the 15/26 formula on your last-drawn basic + DA and years of service, with the ₹20 lakh tax-exemption limit. No sign-in needed.
How gratuity works
Gratuity is a lump sum employers pay for long service. Under the Payment of Gratuity Act the amount is (15 ÷ 26) × last-drawn (basic + DA) × completed years, capped at ₹20,00,000. It's tax-exempt up to that ₹20 lakh lifetime limit. This is an estimate; your final gratuity depends on your employer's rules and exact service dates.
Frequently asked questions
What is the gratuity calculation formula?
For employees covered by the Payment of Gratuity Act: gratuity = (15 ÷ 26) × last-drawn monthly (basic + DA) × completed years of service. A part-year over 6 months is rounded up to a full year.
When am I eligible for gratuity?
Generally after 5 years of continuous service with the same employer. The 5-year rule is waived if service ends due to death or disablement.
Is gratuity taxable?
Gratuity is tax-exempt up to a lifetime limit of ₹20,00,000 for covered private employees; anything above that is taxable. Government employees' gratuity is fully exempt.