Gratuity Calculator
Estimate the gratuity you'll receive when leaving a job — based on the statutory 15/26 formula with last drawn basic + DA, service rounding and the ₹20 lakh ceiling.
Gratuity payable (10 years counted)
₹2,88,462
Formula for employers covered under the Payment of Gratuity Act, 1972: (15 × last drawn salary × years of service) ÷ 26. Service of 6 months or more in the final year counts as a full year. Gratuity up to ₹20 lakh is tax-exempt for non-government employees.
How to use
- 1Enter your last drawn basic pay plus DA per month.
- 2Enter your completed years of service, and any extra months.
- 3Read the gratuity payable — the ₹20 lakh statutory cap is applied for you.
Frequently Asked Questions
What is the gratuity formula?
For employers covered under the Payment of Gratuity Act, 1972: gratuity = (15 × last drawn salary × completed years of service) ÷ 26, where salary means basic pay plus dearness allowance, and a month is counted as 26 working days.
Is 4 years 7 months eligible for gratuity?
The Act requires 5 years of continuous service, but several court rulings treat 4 years and 240 days (roughly 4 years 8 months) as qualifying. Many employers apply this — check your employer's policy.
Is gratuity taxable?
For government employees gratuity is fully exempt. For others covered by the Act, it is exempt up to ₹20 lakh (lifetime limit); anything above that is taxed as salary.
Do years round up?
Yes — service of 6 months or more in the final year counts as a full year. For example, 7 years 7 months counts as 8 years.