Gratuity
Calculator
Calculate your gratuity amount based on your last drawn salary and years of service. Understand your eligibility and gratuity payment rules.
Calculate Your Gratuity
💡 Basic Salary + Dearness Allowance (monthly amount)
⚠️ Minimum 5 years of service required for gratuity eligibility
Gratuity Calculation Results
Enter your salary and service years to calculate gratuity
Gratuity Rules & Benefits
Understanding gratuity eligibility, calculation method, and payment rules
Eligibility Period
Minimum 5 years of continuous service required. Payable on retirement, resignation, death, or disablement.
Calculation Formula
(Basic Salary + DA) × 15 × Years of Service ÷ 26. Maximum limit is ₹20 lakhs.
Tax Treatment
Gratuity up to ₹20 lakhs is completely tax-free in the hands of the employee.
Employer Coverage
Applicable to establishments with 10+ employees. Covered under Payment of Gratuity Act 1972.
Payment Timeline
Must be paid within 30 days of becoming due. Delay attracts interest @simple rate.
Nomination
Employee can nominate family members. Essential for claims in case of death during service.
Calculate Your Retirement Benefits
Calculate gratuity, save your calculations, and plan your retirement benefits effectively
Gratuity Calculator - Frequently Asked Questions
Find answers to common questions about this calculator
Gratuity is a lump sum amount paid by employer to employee as appreciation for services rendered. It becomes payable upon retirement, resignation (after 5 years), death, or disability.
You're eligible if: 1) Completed 5 years of continuous service, 2) Company has 10+ employees, 3) Retiring, resigning, or incapacitated. Death or disability makes gratuity payable immediately without 5-year condition.
Formula: (Last drawn salary × 15 × Years of service) / 26. Last drawn salary = Basic + DA. Maximum gratuity is ₹20 lakh. For example: ₹50,000 salary × 15 × 10 years / 26 = ₹2.88 lakh.
For government employees: Fully tax-exempt. For private sector (covered under Act): Exempt up to ₹20 lakh. For others: Minimum of (₹20L, actual gratuity, calculated amount) is exempt.
Gratuity must be paid within 30 days of becoming eligible (retirement, resignation, death). If delayed, employer must pay it with interest. Unclaimed gratuity attracts compound interest.
Gratuity can be forfeited if: 1) Employee terminated for misconduct causing financial loss, 2) Moral turpitude offense. Partial forfeiture for damage/loss caused. Cannot be denied for ordinary resignation.
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