Gratuity Calculator
🔒 In your browserGratuity payable from last salary and years of service.
How it works
Calculate the gratuity payable when you leave a job after 5+ years. Enter your last drawn monthly salary (basic + dearness allowance) and your years of service — gratuity is 15/26 of a month's salary per completed year.
Applies to employees covered by the Payment of Gratuity Act (15/26 per year). Service beyond 6 months in the final year usually rounds up. Gratuity up to ₹20 lakh is tax-free; amounts above may be taxable.
🔒 Calculated entirely in your browser — nothing is uploaded.
🔒 Calculated in your browser: your loan, investment and salary figures are never uploaded. Interest, tax and salary structures vary by bank and employer, so treat the result as a close estimate and confirm exact figures with them.
About the Gratuity Calculator
This free gratuity calculator works out the gratuity payable when you leave a job after five or more years of service. Enter your last drawn monthly salary (basic plus dearness allowance) and your years of service to see the amount.
It runs in your browser, with no signup.
How gratuity is calculated
For employees covered by the Payment of Gratuity Act, gratuity is 15 days of salary for every completed year of service, calculated as 15/26 of your last drawn monthly salary (basic + DA) multiplied by the number of years. Service beyond six months in the final year is usually rounded up to a full year. Gratuity up to ₹20 lakh is exempt from tax.
A worked example
With a last drawn salary of ₹50,000 (basic + DA) and 10 years of service, gratuity is 15/26 × 50,000 × 10 = about ₹2,88,462. Since that's below the ₹20 lakh tax-free limit, the full amount is exempt from tax. A longer tenure or higher final salary raises the payout proportionally.
Frequently asked questions
How is gratuity calculated?
For those covered by the Payment of Gratuity Act, it's 15/26 of your last monthly salary (basic + DA) times your years of service. This tool applies that formula.
How many years to be eligible for gratuity?
Generally five years of continuous service. Service beyond six months in the final year usually counts as a full year when calculating the amount.
Is gratuity taxable?
Gratuity up to ₹20 lakh is tax-free for covered employees; anything above may be taxable. The calculator flags when your amount crosses the limit.
What salary is used for gratuity?
The last drawn monthly basic salary plus dearness allowance — not your full CTC or take-home. Enter that figure for an accurate result.
Is my data private?
Yes — everything is calculated in your browser.