Gratuity Calculator
Calculate the gratuity you’re owed on leaving a job.
Work out the gratuity a private-sector employee is owed using the Payment of Gratuity Act formula: 15 × last drawn salary (basic + DA) × years of service ÷ 26. Enter your last salary and tenure to see the payable amount, with eligibility (5 years) and the ₹20 lakh cap handled for you. Runs fully in your browser — nothing is uploaded.
How to use Gratuity Calculator
Enter last drawn salary
Type your last drawn monthly salary (basic plus DA) in rupees so this free online gratuity calculator can apply the Payment of Gratuity Act formula.
Enter years of service
Add your total years of continuous service; tenure rounds to the nearest full year, with six months or more rounding up automatically.
Read gratuity payable
Instantly see your gratuity amount, calculated as 15 times last salary times years divided by 26, displayed in rupees and in words.
Check eligibility note
Review the on-screen flag if your service is under five years, since gratuity is normally payable only after five years of continuous employment.
See the ₹20 lakh cap
If the formula result exceeds the statutory ceiling, the calculator caps your payable gratuity at ₹20 lakh and shows the uncapped figure for reference.
Share the result
Use the share button to copy a link that reopens this gratuity calculator with your last drawn salary and years of service preserved.
Frequently asked questions
Who is eligible for gratuity?
Employees who complete at least 5 years of continuous service with an employer covered by the Payment of Gratuity Act. The 5-year rule is waived if service ends due to death or disability.
Why divide by 26?
The Act treats a month as 26 working days (excluding 4 Sundays). Multiplying the daily wage by 15 gives 15 days’ pay for each completed year of service.
How are part-years counted?
Service is rounded to the nearest full year — 6 months or more rounds up, less rounds down. So 7 years 8 months counts as 8 years, while 7 years 3 months counts as 7.
How do I calculate gratuity in India?
Use the Payment of Gratuity Act formula: gratuity = 15 × last drawn salary (basic + DA) × years of service ÷ 26. This gratuity calculator does it instantly — for example, ₹30,000 salary over 5 years gives about ₹86,538.
Is gratuity taxable?
Gratuity is exempt from income tax up to ₹20 lakh for employees covered by the Payment of Gratuity Act; any amount above that cap is taxable. This calculator applies the ₹20 lakh ceiling automatically.
What salary is used in the gratuity calculation?
Only the last drawn basic salary plus dearness allowance (DA) is used — not gross salary, HRA, bonuses or other allowances. Enter the basic + DA figure for an accurate gratuity amount.
Is my data sent anywhere?
No. Everything is calculated in your browser with JavaScript — nothing you enter is uploaded.
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