Gratuity Calculator
Calculate the gratuity payable based on your salary and years of service.
Best for: Use it when changing jobs or retiring to estimate your gratuity, or to verify an employer's calculation.
Input
Result
EstimateGratuity payable: ₹2,88,462
What to do next
Next: SSI Payment CalculatorMore about this result
- Type
- Government / Standard
- Method
- Official / government standard
- Confidence
- High
Uses an official government, statutory or medical standard (e.g. tax rules, WHO ranges).
The result is your estimated gratuity. It is tax-exempt up to the statutory limit. More years of service and a higher final salary both increase it.
- 1.Last drawn salaryHigh impact
Gratuity scales with final basic + DA.
- 2.Years of serviceHigh impact
Each completed year adds 15 days of pay.
- Inflation often matters more than expected over the long run.
- Small rate changes can significantly affect total outcomes.
- Long-term consistency usually beats short-term timing.
Small, consistent changes compound: time in the market usually beats timing the market.
How it's calculated & sources
Method: Payment of Gratuity Act, 1972 — 15 days' wages (15/26 of monthly salary) per completed year of service.
Tax-free ceiling ₹20 lakh. Rules verified June 2026.
- 15/26 formula for covered employees
- Generally 5+ years of service required
- Basic + DA used
Free & no sign-up · runs entirely in your browser. Results are estimates for general information, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.
How it works
For employees covered by the Gratuity Act: gratuity = (15 ÷ 26) × last drawn salary (basic + DA) × completed years of service. The tax-free limit is ₹20 lakh.
Frequently asked questions
When am I eligible for gratuity?+
Generally after completing 5 continuous years with an employer (relaxed in cases of death or disablement).
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