Gratuity Calculator
Calculate gratuity amount as per Payment of Gratuity Act.
Employment Details
₹
Yrs
Minimum 5 years of continuous service required for gratuity.
Months
Gratuity Amount
₹0
Last Drawn Salary—
Completed Years—
Formula Used—
Tax Exemption Limit₹20,00,000
Taxable Gratuity₹0
Estimate gratuity payout for private and public sector employees in India using the Payment of Gratuity Act logic and service tenure assumptions.
Who gets gratuity
Employees who complete at least 5 years of continuous service are typically eligible, subject to legal exceptions and employer policy.
Gratuity formula
Gratuity = Last Drawn Salary x 15/26 x Years of Service
Last drawn salary generally means basic + DA.
Inputs needed
- Last drawn basic salary
- Dearness allowance (if applicable)
- Completed years of service
- Covered under Gratuity Act or not
How to estimate gratuity
- Enter last drawn basic + DA
- Enter total years of service
- Apply 15/26 multiplier
- Review gross gratuity and tax treatment as applicable
- Use estimate in retirement planning
Gratuity example
Scenario: Last drawn basic + DA is Rs 70,000 and service is 12 years.
Inputs
- Salary: Rs 70,000
- Years: 12
Calculation
- Gratuity = 70,000 x 15/26 x 12
- Gratuity = Rs 4,84,615 (approx)
Result: Estimated gratuity payout is about Rs 4.85 lakh.
Frequently Asked Questions
Taxability depends on employment type and exemption limits under prevailing tax law.
Generally not eligible, except specific legal circumstances such as death or disability.
No, formula typically uses basic plus DA, not variable bonus.
This formula is India-specific; other countries use different severance frameworks.