Gratuity Calculator 2026 | Estimate Your Gratuity Amount

As per Payment of Gratuity Act, 1972

Gratuity Calculator (India)

Calculate your exact gratuity amount. See your tax-free exemptions based on the latest government limit of ₹20 Lakhs.

⚠️ Not Eligible! Minimum 5 years of continuous service is required for Gratuity.

Last Drawn Salary (Basic + DA)

₹

₹1K ₹5L+

Years

Months

If months of service > 6, it is rounded up to a full year for calculation.

Total Gratuity Payable

₹2,30,769

Based on 8 effective years of service

Tax Limit
₹20 Lakhs

Tax-Free (Exempted)

₹2,30,769

Taxable Amount

₹0

Gratuity Calculator India: Know Your Corporate Reward (2026)

💡 Bhai Ki Advice (The 5-Year Myth): Sabko lagta hai Gratuity claim karne ke liye company mein exact 5 saal pure hone chahiye. Par Indian Labour Law ka ek ‘Secret Rule’ hai! Agar aapne apni company mein 4 years aur 240 days (approx 4.8 years) continuous service de di hai, toh aap legally Gratuity ke hakdaar hain! HR aksar ye baat chupate hain taaki company ka paisa bache. Resign karne se pehle apna notice period mila kar days zarur count kar lena!

Gratuity is a lump sum monetary benefit provided by an employer to an employee as a token of appreciation for their long-term, continuous service. Governed by the Payment of Gratuity Act, 1972, it is a mandatory payout for any company in India with 10 or more employees. Our India Gratuity Calculator simplifies the complex legal formula, helping you instantly discover the exact amount you are owed upon resignation, retirement, or termination.

How is Gratuity Calculated? (The Formula)

The legal formula for companies covered under the Gratuity Act is: (15/26) × Last Drawn Salary × Years of Service. Here is how to use our tool:

Enter Your Last Drawn Basic Salary: Gratuity is NOT calculated on your in-hand or gross salary. It is calculated strictly on your Basic Pay + Dearness Allowance (DA). Ignore components like HRA, LTA, or variable bonuses.
Input Total Years of Service: Enter the exact number of years and months you have worked.
Pro Tip: If you have worked for 7 years and 7 months, it is rounded up to 8 years. If you worked for 7 years and 5 months, it is rounded down to 7 years.
Check the Results: The tool will display your exact legal gratuity payout. You can compare this with your HR’s final settlement sheet to ensure you aren’t being underpaid.

Frequently Asked Questions (Gratuity Rules)

1. Is Gratuity money completely tax-free?

Yes, up to a certain limit! For private sector employees covered under the Payment of Gratuity Act, the gratuity amount received is tax-exempt up to ₹20 Lakhs in a lifetime under Section 10(10) of the Income Tax Act. For government employees, the entire gratuity amount is completely tax-free.

2. Does my Notice Period count towards the 5-year eligibility?

Absolutely. The days you serve during your official notice period are legally considered part of your continuous service. If completing your notice period pushes your total tenure past the 4 years and 240 days mark, you must be paid gratuity.

3. Can an employer refuse to pay gratuity?

An employer can only withhold or refuse gratuity under extreme legal circumstances, such as if an employee was terminated for “moral turpitude,” violent behavior, or causing intentional financial damage to company property. Resigning to join a competitor does not invalidate your gratuity.

4. What if my company is not covered under the Gratuity Act?

If a company has fewer than 10 employees, they are not legally bound by the Act. However, if they still choose to pay gratuity (ex-gratia), the calculation formula changes slightly. The formula becomes: (15/30) × Last Drawn Salary × Years of Service.

5. When is the Gratuity amount credited to my bank account?

By law, the employer must pay the gratuity amount within 30 days from the employee’s last working day. If the company delays the payment beyond 30 days, they are legally required to pay simple interest on the pending amount to the employee.

Gratuity Calculator (India)

Gratuity Calculator India: Know Your Corporate Reward (2026)

How is Gratuity Calculated? (The Formula)

Frequently Asked Questions (Gratuity Rules)

Suggested Utilities