Gratuity Calculator

Estimate your gratuity payout based on your last drawn salary and years of service. Adjust the inputs above and results update instantly.

Gratuity is a lump-sum benefit paid by an employer to an employee as a token of appreciation for services rendered, typically upon retirement, resignation (after 5+ years of service), or death/disability. For organizations covered under the Payment of Gratuity Act, 1972, gratuity is calculated using a fixed formula based on your last drawn basic salary + DA and total years of service.

Frequently Asked Questions

How is gratuity calculated?
Gratuity = (Last Drawn Basic + DA) × 15 × Years of Service / 26, where 26 represents the assumed working days in a month and 15 represents 15 days' wages per year of service.
Am I eligible for gratuity?
Generally, you're eligible after completing 5 years of continuous service with the same employer, though this condition is waived in case of death or disability.
Is there a maximum gratuity limit?
Yes, under the Payment of Gratuity Act, the maximum tax-exempt gratuity amount is currently capped at Rs. 20 lakh; amounts above this may be taxable depending on your employer type.