Gratuity Calculator
Estimate your gratuity using the standard 15/26 formula under the Payment of Gratuity Act. Calculated in your browser.
Informational only, not legal or tax advice. Tax exemption is capped at ₹20 lakh; rules vary by employer coverage. Consult a professional. Your inputs never leave your device.
Estimate the gratuity payable when you leave a job, using the standard formula under the Payment of Gratuity Act. Relevant for employees with several years of service.
How to use
- Enter your last drawn monthly salary (basic + DA).
- Enter your total years of service.
- Calculate to see the estimated gratuity amount.
Frequently asked questions
How is gratuity calculated?
The common formula is 15 days' wages for each completed year of service, with a month taken as 26 working days: (15 ÷ 26) × last salary × years. This tool uses that formula.
Is gratuity tax-free?
Gratuity is tax-exempt up to a government-set ceiling; amounts above it may be taxable. The tool flags when your figure exceeds the cap. Confirm current limits with a professional.
How many years do I need to qualify?
Under the Act, gratuity generally becomes payable after five years of continuous service, with some exceptions. This tool estimates the amount regardless, so check your eligibility separately.