What is it?
The Gratuity Calculator works out the gratuity you get when you leave a job after long service, under India’s Payment of Gratuity Act.
Who is it for?
Private-sector employees changing jobs or retiring, HR staff, and employers estimating liabilities.
How to use it
Enter your Last basic salary + DA a month, Years of service and any extra months. Tick Employer is covered by the Payment of Gratuity Act if your employer has 10 or more employees. Read the Gratuity, Years counted and the Tax-free limit. The answer appears as you type; there is no Calculate button. Pick your Currency at the top if asked, then tap Copy result or Share on WhatsApp.
The formula
- Covered employers: gratuity = 15 × last basic + DA × years ÷ 26. A part year of more than 6 months counts as a full year.
- Employers not covered by the Act may still pay gratuity, usually as 15 × salary × completed years ÷ 30.
Eligibility
- Usually after at least 5 years of continuous service. Courts have accepted 4 years and 240 days in some cases; ask your HR.
- The 5-year condition doesn’t apply on death or disability.
- Fixed-term employees under the new labour codes may become eligible after one year once those rules are in force.
Tax
Gratuity is tax-free up to a lifetime limit (shown by the calculator) for private employees, and fully tax-free for government employees. Amounts above the limit are taxed at your slab.
This is an estimate to help you plan, not financial or tax advice. For big decisions, check the latest rules and talk to a qualified adviser.
Errors and how to fix them
- Lower than expected: extra months under 6 don’t round up; check the Act box.
Open the tool: Gratuity Calculator
Still stuck?
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Questions, or an error not listed here?
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