Gratuity Calculator
Estimate gratuity payable under the Payment of Gratuity Act, 1972 based on last drawn salary and years of service, with the ₹20 lakh statutory cap. Free to use.
Gratuity Calculator
A gratuity calculator computes the lump-sum payment an employer owes an employee under India's Payment of Gratuity Act, 1972, based on last drawn salary and years of service.
Gratuity = (15 / 26) × Last Drawn Basic+DA Salary × Years of Service, subject to the Act's statutory ceiling and a minimum of 5 years of continuous service (with exceptions for death/disability).
Input: Last basic+DA ₹60,000/month, 12 years of service
Result: Gratuity ≈ (15/26) × ₹60,000 × 12 ≈ ₹4.15 lakh, subject to the statutory cap
Why 15/26 and not 15/30?
The Act defines a month as 26 working days (excluding weekly offs) for this specific formula, not calendar days.
Is gratuity taxable?
Government employees' gratuity is fully exempt; private-sector employees get exemption up to the statutory ceiling under Section 10(10) of the Income Tax Act, with any excess taxed as salary.
Gratuity Calculator: how it works
Gratuity is a lump sum paid on leaving after at least five years of service, computed from last drawn basic salary and completed years.
Formula
Gratuity = last drawn salary × 15/26 × years of service, for employees covered by the Payment of Gratuity Act.