How is gratuity calculated?

Gratuity = (Last drawn salary × 15 × Completed years of service) / 26. The last drawn salary includes basic pay and dearness allowance.

Am I eligible for gratuity?

You become eligible after completing five continuous years of full-time service with the same employer, though it may be paid on death or disability without this condition.

How much gratuity is tax-free?

The lower of the actual gratuity or the statutory limit (currently ₹20 lakh under Section 10(10)) is exempt from tax.

What is the 26 in the formula?

The Payment of Gratuity Act treats 15 days' pay per year of service, based on 26 working days per month, hence the divisor 26.

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Gratuity Calculator

Calculate your gratuity amount based on salary and years of service

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About this tool

Find out how much gratuity you are entitled to when leaving a job after completing at least five years of continuous service. Enter your last drawn basic salary, dearness allowance, and total years of service to get your gratuity amount under the Payment of Gratuity Act, plus the tax-exempt portion under Section 10(10). Useful while negotiating a resignation or retirement settlement and checking whether the figure your employer quotes is correct.

How to use

1Enter your last drawn basic salary per month
2Add any dearness allowance (DA) you receive
3Enter total years of service after five years
4Press Calculate to see your gratuity and tax exemption

Pros & Cons

Pros

Free to use with no signup, watermark, or hidden charges
Processes your input entirely in your browser, so nothing is ever uploaded to a server
Simple 4-step workflow: enter your last drawn basic salary per month, add any dearness allowance (da) you receive, enter total years of service after five years

Cons

Requires a modern browser with JavaScript enabled
Very large files may take noticeably longer to process
Results are estimates for planning purposes, not professional financial or legal advice

Features

100% free to use
No registration required
Processes locally in your browser
Works on all devices

Privacy

Your data is processed entirely in your browser and never sent to our servers. We have no access to your files or data.

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