Who is eligible for gratuity?

Employees who have completed at least 5 years of continuous service in an organisation covered under the Payment of Gratuity Act.

Is gratuity tax-free?

Up to ₹20 lakh of gratuity is tax-exempt under section 10(10) for employees covered under the Act.

What if I worked 7 years 7 months?

If service is more than 6 months in the final year, it is rounded up to 8 years.

Finance

Gratuity Calculator

Calculate retirement gratuity payable as per the Gratuity Act

Last drawn (Basic + DA) monthly

₹

Years of service

yrs

Gratuity Payable

₹2,30,769

Below the ₹20 lakh statutory cap

Per year of service

₹28,846

Uncapped value

₹2,30,769

Formula

Gratuity = (15 × Last drawn salary × Years of service) / 26

Example: Salary ₹50,000 × 8 years → (15 × 50000 × 8) / 26 = ₹2,30,769.

How to use

Enter your last drawn basic + DA monthly salary.
Provide complete years of continuous service (≥ 5).
See your statutory gratuity entitlement.

Benefits

Estimate your retirement / resignation payout.
Plan financial transitions confidently.

Frequently Asked Questions

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This formula applies to employees covered under the Payment of Gratuity Act, 1972. Different formulas may apply for others.

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