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Gratuity Calculator

Estimate your gratuity payout from monthly basic plus DA and years of service using the Payment of Gratuity Act formula.

Results update instantly.Change any value and the estimate recalculates on the spot.

Money

Gratuity

Estimate your gratuity payout from monthly basic plus DA and years of service under the Payment of Gratuity Act.

₹
yrs

Gratuity payable

-

  • Daily wage basis15/26 of monthly pay
  • Tax-free up to₹20,00,000

Simplified estimate. Gratuity is payable only after 5 years of continuous service; 6 months or more counts as a full year. Up to ₹20 lakh is tax-free.

How to use

1. Enter your monthly basic salary plus dearness allowance. 2. Enter your completed years of service. 3. Read the gratuity payable.

Worked example

Basic + DA of ₹50,000 with 10 years of service: 50,000 x 15/26 x 10 = ₹2,88,462 payable as gratuity.

How the math works

Gratuity = monthly basic x 15/26 x years of service. The 15/26 factor treats a month as 26 working days and pays 15 days of wages for each year of service.

When is gratuity payable?
After 5 years of continuous service with the same employer, on resignation, retirement, death, or disablement.
Is gratuity taxable?
Up to ₹20 lakh received under the Payment of Gratuity Act is tax-free. Amounts above that are taxed as salary income.
How are part years counted?
A period of 6 months or more counts as a full year; less than 6 months is ignored. This calculator uses whole years only.
What counts as basic + DA?
Your basic salary plus dearness allowance. HRA, bonuses, and other allowances do not count toward gratuity.

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How it works

How the Gratuity Calculator works

Quick answer: Under the Payment of Gratuity Act formula, ₹50,000 monthly basic plus DA and 10 years of service give a gratuity of ₹2,88,462.

Formula

Gratuity = last drawn basic + DA × 15 ÷ 26 × years of service

15 days of wages for each completed year, with a month counted as 26 working days.

Worked example

₹50,000 × 15 ÷ 26 × 10 = ₹2,88,462.

₹50,000 monthly basic + DA

Years of serviceGratuity
5₹1,44,231Open
10₹2,88,462Open
15₹4,32,692Open
20₹5,76,923Open
30₹8,65,385Open

Assumptions and limits

  • Generally payable after 5 years of continuous service.
  • Tax-free limits and employer-specific rules may apply.

Frequently asked questions

When is gratuity payable?

After 5 years of continuous service with the same employer, on resignation, retirement, death, or disablement.

Is gratuity taxable?

Up to ₹20 lakh received under the Payment of Gratuity Act is tax-free. Amounts above that are taxed as salary income.

How are part years counted?

A period of 6 months or more counts as a full year; less than 6 months is ignored. This calculator uses whole years only.

What counts as basic + DA?

Your basic salary plus dearness allowance. HRA, bonuses, and other allowances do not count toward gratuity.

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