Gratuity Calculator – Fast & Accurate
Gratuity is a monetary reward given by an employer to an employee for services rendered over a period of time, mandated by the Payment of Gratuity Act, 1972. If you've been with your company for 5+ years and are planning to switch jobs or retire, our Gratuity Calculator will help you determine exactly what you are owed. Simply input your last drawn basic salary (including DA) and your total tenure, and the calculator applies the official government formula to give you your gratuity amount.
Act-Compliant Calculation
Uses the official formula: (15 * Last Drawn Basic * Tenure) / 26.
Retirement Planning
Essential for determining your lumpsum payout upon retirement.
Tenure Rounding
Automatically understands the '6+ months rounded to a year' rule.
Tax Exemption Check
Check if your payout falls under the ₹20 Lakh tax-free limit.
Frequently Asked Questions
Who is eligible for Gratuity?
An employee becomes eligible for gratuity only after completing 5 years of continuous service with the same employer.
How is Gratuity calculated?
The formula is: (15 * Last Drawn Basic Salary * Tenure in Years) / 26.
Is the gratuity amount tax-free?
For private-sector employees covered by the Act, gratuity is tax-exempt up to a maximum limit of ₹20 Lakhs.
How is tenure rounded off?
If you have worked for 5 years and 7 months, it is rounded to 6 years. If you worked 5 years and 4 months, it remains 5 years.
