About the Gratuity Calculator
Gratuity is a lump sum your employer pays when you leave after long service, usually 5 years or more. The amount depends on your last drawn salary and years of service.
Enter your last basic salary plus DA, your years of service and whether your employer is covered by the Gratuity Act.
Formula used
Covered by the Act: Gratuity = Salary × 15 ÷ 26 × years of service. Not covered: Salary × 15 ÷ 30 × years of service.
Frequently asked questions
How is a part year counted?
Under the Act, a period of more than 6 months is usually rounded up to the next year.
Is gratuity tax-free?
Up to ₹20 lakh it is generally tax-free for eligible employees. Check the latest rules.
Who is eligible?
Rules on eligibility, such as the 5-year requirement, can have exceptions. Check with your HR team.