Gratuity Calculator
Estimate the gratuity amount you're entitled to under the Payment of Gratuity Act, based on your last drawn salary and years of service.
How to use Gratuity Calculator
- 1Enter your last drawn basic salary plus dearness allowance.
- 2Enter your total years of service (completed years, rounded per the Act's rules).
- 3View your estimated gratuity amount.
About Gratuity Calculator
Gratuity is a lump-sum benefit paid by an employer to an employee who has completed at least 5 years of continuous service, under the Payment of Gratuity Act, 1972 (for organisations covered under the Act).
Gratuity Formula
This formula applies to employees covered under the Payment of Gratuity Act, using a 26-day working month and 15 days of wages per year of service.
Benefits
- • Estimate your gratuity payout before resigning or retiring.
- • Understand how years of service directly scale your gratuity amount.
Common mistakes
- • Using gross salary instead of basic + DA, which is what the formula requires.
- • Not rounding years of service correctly — service of 6 months or more in the final year typically rounds up to a full year.
Frequently Asked Questions
Gratuity received by government employees is fully tax-exempt. For private-sector employees covered under the Act, exemption is available up to a prescribed limit. This calculator does not compute tax.
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