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Gratuity Calculator

Calculate the statutory gratuity reward for your years of service.

₹
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Gratuity is 15 days of salary for every completed year of service, divided by 26 (working days in a month).

Total Payable Gratuity

₹2,88,462

Statutory Calculation

Tax-Exempt Portion

₹2,88,462

Taxable Portion

₹0

DISCLAIMER: This tool provides estimates based on current laws and regulations. Tax, GST, and labor laws are subject to periodic changes. Consult a qualified professional for precise compliance.

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Using the Gratuity Calculator

Our online gratuity calculator for India helps you estimate the loyalty reward you'll receive from your employer. As per the Payment of Gratuity Act, employees who serve a company for 5+ years are entitled to this benefit.

Latest RBI Rates
Updated Dec 2025 | FY 2025-26 Compliant
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Key Features

  • •Accurate calculation based on the Payment of Gratuity Act, 1972
  • •Calculates total gratuity amount based on last drawn basic salary
  • •Automatic rounding of years (e.g., 5 years 7 months = 6 years)
  • •Highlights the maximum tax-free limit of ₹20 Lakhs
  • •Works for both private and government sector employees
  • •Simple, one-click results with zero data collection

How to calculate Gratuity Calculator

Step-by-step Guide & Informational Intent

  1. 1.Enter your 'Last Drawn Basic Salary' plus Dearness Allowance (DA).
  2. 2.Input the 'Number of Years' you have worked with the company.
  3. 3.The calculator will instantly apply the (15/26) ratio formula.
  4. 4.Check if your gratuity amount falls within the ₹20 Lakh tax-free limit.
  5. 5.Use this total to plan your post-employment or retirement finances.

How the Calculation Works

The formula used is: (15/26) × (Last Drawn Salary + DA) × (Number of completed years). The 15/26 factor accounts for 15 days of salary for every 26 working days in a month.

Important Assumptions

  • • Continuous service of 5 years or more
  • • Company employs 10 or more people
  • • Salary includes Basic and DA only
  • • Last year of service is rounded to the nearest integer (>6 months = 1 year)
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Gratuity Payout Scenarios

10 Years Service: With a ₹50,000 basic salary, you earn ~₹2.88 Lakhs in gratuity.
25 Years Service: A ₹1,00,000 basic salary results in a windfall of ~₹14.42 Lakhs.
Tax Planning: If your gratuity is ₹25 Lakhs, remember ₹20 Lakhs is tax-free and ₹5 Lakhs is taxable.
Rounding Advantage: Serving for 5 years and 6 months exactly might get you 6 years' worth of gratuity.
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Gratuity Calculator FAQs

Our online gratuity calculator for India helps you estimate the loyalty reward you'll receive from your employer. As per the Payment of Gratuity Act, employees who serve a company for 5+ years are entitled to this benefit.

Gratuity is a monetary benefit given by an employer to an employee for services rendered. As per the Payment of Gratuity Act, 1972, employees who have completed at least 5 years of continuous service in an organization with 10 or more employees are eligible.
The standard formula in India is: (Last Drawn Basic Salary + DA) x (15/26) x Number of Years of Service. The '15/26' reflects 15 days of salary out of 26 working days in a month.
Currently, the tax-exempt limit for gratuity for non-government employees is ₹20 Lakh. Any amount received above this limit is taxable as per your income tax slab.
No. The 5-year continuous service requirement is waived off in the unfortunate event of the death or disablement of an employee. In such cases, gratuity is paid to the nominee or legal heir regardless of the service period.
Gratuity is generally applicable only to 'employees' on the company's payroll. Temporary workers or contractors are usually not eligible unless they are considered employees under specific legal interpretations or the company's policy.
Yes. In India, if the last year of service is more than 6 months, it is rounded off to the next full year. For example, 5 years and 7 months of service is considered as 6 years for gratuity calculation.