Gratuity calculator

Gratuity is a lump sum your employer pays when you leave after at least 5 years of service. Enter your last basic pay plus dearness allowance and your years of service.

0 to 11 months beyond full years.
Estimated gratuity
₹2,88,462
Service counted10 years
Formula15 × pay × years ÷ 26

Questions people ask

What is the gratuity formula?

For employers covered by the Payment of Gratuity Act: 15 × last drawn basic pay plus DA × years of service ÷ 26. A part year of more than 6 months counts as a full year. For employers not covered by the Act, the usual formula divides by 30 and counts only completed years.

Who is eligible?

Employees with at least 5 years of continuous service with the same employer, on resignation, retirement or termination. The 5-year rule does not apply on death or disablement. Courts have sometimes counted 4 years and 240 working days as 5 years.

Is there a limit, and is gratuity taxed?

The Act caps the gratuity payable, and income tax exempts gratuity only up to a set limit for private sector employees. Both limits have been raised over time, so check the current figures with your employer or a tax adviser.

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Results are estimates for information only, not financial or tax advice. Rates, rules and limits change, so check with your bank, employer or a qualified adviser before you decide.