Gratuity Calculator
Calculate the gratuity due when you leave a job: the 15/26 formula, 6-month rounding, 1-year rule for fixed-term staff and the ₹20 lakh tax limit.
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About the Gratuity Calculator
Gratuity is a lump sum an employer pays when you leave after long service, as thanks for the years you worked. Under the Payment of Gratuity Act, now part of the Code on Social Security that took effect in November 2025, employers with 10 or more staff must pay it after 5 years of continuous service, and fixed-term employees qualify after just 1 year.
Enter your last monthly basic pay plus dearness allowance and your years and months of service. For covered employers the calculator pays 15 days' wages for each year, counting a month as 26 working days, and rounds a final part-year of 6 months or more up to a full year. For employers not covered by the Act it uses the common half-month (15/30) rule for completed years. It also shows how much is tax-free under the ₹20 lakh limit.
How to use the Gratuity Calculator
- 1
Enter your last drawn monthly basic pay plus DA.
- 2
Enter your total service in years and months.
- 3
Choose whether your employer is covered by the Act (10 or more employees) and whether you are a fixed-term employee.
- 4
Read the gratuity payable and the tax-free and taxable parts.
Examples
50,000 basic + DA, 9 years 7 months, coveredGratuity: ₹2,88,461.54 for 10 years
Tax-free: ₹2,88,461.5430,000 basic + DA, 6 years 8 months, not coveredGratuity: ₹90,000.00 for 6 years
Tax-free: ₹90,000.00Good to know
- Your employer's policy may pay more than the legal minimum shown here.
- Gratuity on death or disablement is due regardless of service length; this calculator follows the normal service rules.
- Under the new labour codes, wages for gratuity must be at least 50% of total pay; adjust the input if your basic + DA is lower.
Frequently asked questions
What is the gratuity formula?
Gratuity = last monthly basic + DA × 15 ÷ 26 × years of service. For example, ₹50,000 × 15 ÷ 26 × 10 years = ₹2,88,462.
Do I need 5 years for gratuity?
For permanent employees, yes (some courts have accepted 4 years and 240 days of work). Fixed-term employees qualify after 1 year under the Code on Social Security. On death or disablement gratuity is paid whatever the service.
Is gratuity taxable?
Gratuity for government employees is fully exempt. For others, up to ₹20 lakh in a lifetime is tax-free; anything above that is taxed as salary.
Is anything I enter saved?
No. The calculation runs on your device and nothing is stored or sent anywhere.
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