Gratuity Calculator India
Find out exactly how much gratuity you're owed. Enter your last drawn Basic + DA and years of service — get the answer in a second.
- ✓ Accurate as per Indian labour law
- ✓ Free, no sign-up, mobile friendly
- ✓ Instant results with formula breakdown
Calculate your gratuity
All amounts in Indian Rupees (₹)
Months > 6 are rounded up to a full year.
Your Gratuity
₹2,01,923
Formula: (15 × 50,000 × 7) / 26
How gratuity is calculated
Under the Payment of Gratuity Act, 1972, employers in India must pay gratuity to employees who have completed at least five years of continuous service.
1. Take last drawn salary
Use Basic Pay + Dearness Allowance from your most recent monthly salary.
2. Multiply by 15 × years
15 days of salary for every completed year of service.
3. Divide by 26
26 represents the working days in a month under the Act.
Gratuity Formula
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26
Frequently asked questions
Who is eligible for gratuity in India?+
Any employee who has completed 5 years of continuous service with an organisation covered under the Payment of Gratuity Act, 1972. The 5-year rule is waived in case of death or disablement.
What salary is used in the formula?+
Last drawn salary = Basic Pay + Dearness Allowance (DA). Allowances like HRA, bonus, or commissions are not included.
Is the gratuity amount tax-free?+
Yes — up to ₹20,00,000 in a lifetime for non-government employees, per current Income Tax rules. Government employees receive a full exemption.
How are part-years of service treated?+
If you have worked more than 6 months in your final year, it counts as a full year. Less than 6 months is ignored.
What if my employer is not covered by the Act?+
If your employer is not covered, the formula becomes (15 × Salary × Years) / 30, and the calculation is based on actual completed years only.