Gratuity Calculator

Calculate gratuity under the Payment of Gratuity Act using last drawn basic + DA and years of service, with the ₹20 lakh tax-free limit.

  • Free, no limits
  • Runs in your browser
  • No sign-up

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How to use the Gratuity Calculator

  1. Enter your last monthly basic + DA.
  2. Enter years and months of service.
  3. Choose whether your employer is covered by the Act.

Frequently asked questions

What is the gratuity formula?

For covered employers: 15 × last salary × years ÷ 26, where a part-year over 6 months counts as a full year. For others: 15 × salary × completed years ÷ 30.

When am I eligible?

After 5 years of continuous service (courts have accepted 4 years 240 days), or earlier on death or disability.

Is gratuity taxable?

For private employees, up to ₹20 lakh in a lifetime is tax-free; the excess is taxable.

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