Gratuity Calculator
What your employer owes you after 5+ years.
₹10,000₹10,00,000
5 yr45 yr
Gratuity payable
₹3.46 L
Formula15⁄26 × salary × years
Amount₹3,46,154
Applies to establishments covered under the Payment of Gratuity Act. Gratuity up to ₹20 lakh is tax-free. Service of 6+ months in the final year rounds up to a full year.
How gratuity is computed
Gratuity = (15 ÷ 26) × last drawn (basic + DA) × completed years of service. The 15/26 fraction represents 15 days' wages for each year, on a 26-working-day month. Five years of continuous service is the minimum to qualify (waived on death or disablement).
Frequently asked questions
Is gratuity taxable?
For employees covered by the Act, gratuity is tax-free up to ₹20 lakh (lifetime, across employers). Anything above that is taxed as salary.
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