Gratuity Calculator
Gratuity payable on leaving a job using the Payment of Gratuity Act formula, with the service rounding rule and tax-free limit.
About Gratuity Calculator
This free gratuity calculator shows how much gratuity you will receive when you resign, retire or leave a job in India. Enter your last drawn monthly basic + DA and your years and months of service, and choose whether your employer is covered by the Payment of Gratuity Act, 1972.
For covered employers it uses 15 days' wages for each year of service with a month taken as 26 days, and counts a part year of more than six months as a full year. It also shows how much of the gratuity is tax-free within the ₹20 lakh limit. It works for private sector employees and runs in your browser.
How to use Gratuity Calculator
- Enter your last drawn monthly basic + DA.
- Enter your years and months of service.
- Choose whether your employer is covered by the Gratuity Act.
Frequently asked questions
What is the gratuity formula?
For employers covered by the Act: last drawn basic + DA × 15 × years of service ÷ 26 (15 days’ wages per year, a month taken as 26 working days). For employers not covered: basic + DA × 15 × completed years ÷ 30.
How are partial years counted?
Under the Act, a part year of more than six months counts as a full year — 7 years 7 months counts as 8 years, but 7 years 6 months counts as 7. For non-covered employers only completed years count.
Who is eligible?
Normally after 5 years of continuous service (courts have accepted 4 years 240 days). The 5-year condition does not apply on death or disablement. Under the Code on Social Security, 2020 (in force from 21 November 2025), fixed-term employees qualify after one year.
How much gratuity is tax-free?
For non-government employees, the exemption is the least of the actual gratuity, the formula amount and ₹20 lakh (lifetime limit). Gratuity of government employees is fully exempt.
How much gratuity will I get for 10 years of service?
With a last drawn basic + DA of ₹50,000, gratuity is 50,000 × 15 × 10 ÷ 26 = about ₹2.88 lakh.
Is gratuity paid on resignation?
Yes, if you have completed at least five years of continuous service (one year for fixed-term employees under the new labour codes).
Which salary is used for gratuity?
The last drawn monthly basic pay plus dearness allowance. HRA, bonus and other allowances are not included.
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