Gratuity calculator
Gratuity from your last salary and years of service, how months are rounded, and how much of it is tax-free.
PrivateNo uploadsRuns in your browser60 thousand
More than 6 months: counts as a full year.
From an earlier job, if any.
Your gratuity
₹4,50,000
4.5 lakh
Eligible: 12 years 7 months is more than the 5 years needed.
- Years counted
- 13
- Formula
- 15 × 60,000 × 13 ÷ 26
- Tax-freelimit 20 lakh
- ₹4,50,000
- Taxable
- ₹0
- Gratuity
- ₹4,50,000
Rates as of 13 Nov 2026: tax-free up to ₹20 lakh in a lifetime for non-government staff; central government payout up to ₹25 lakh; fixed-term staff eligible after 1 year (Code on Social Security, 2020).
What each year adds
Each extra year adds ₹34,615 at today's salary.
| Years counted | Gratuity |
|---|---|
| 5 | 1,73,077 |
| 6 | 2,07,692 |
| 7 | 2,42,308 |
| 8 | 2,76,923 |
| 9 | 3,11,538 |
| 10 | 3,46,154 |
| 11 | 3,80,769 |
| 12 | 4,15,385 |
| 13 (you) | 4,50,000 |
| 14 | 4,84,615 |
| 15 | 5,19,231 |
| 16 | 5,53,846 |
| 17 | 5,88,462 |
| 18 | 6,23,077 |
How it is calculated
Gratuity = 15 × last monthly basic + DA × years ÷ 26
You get 15 days' pay for every year worked. A month's pay is divided by 26 working days to get a day's pay. A part year of more than six months counts as a full year.
Example: last basic + DA ₹50,000, 10 years 7 months, covered employer. Years counted: 11. Gratuity = 15 × 50,000 × 11 ÷ 26 = ₹3,17,308.
Not covered: 15 × salary × completed years ÷ 30. The same ₹50,000 and 10 years 7 months gives 15 × 50,000 × 10 ÷ 30 = ₹2,50,000.
Tax: government employees pay none. Others pay tax on the part above the least of the gratuity, the formula amount and ₹20 lakh.
How to calculate gratuity
Enter your last salary
Type your last monthly basic pay plus DA from the payslip.
Enter your service
Add the years and months you worked with this employer, and whether the employer is covered by the gratuity law.
Read your gratuity
See the amount, the years counted, whether you are eligible, and how much is tax-free. Download the summary as PDF or Excel.
Good to know
- If you are a few weeks short of the 7th month in a year, staying a little longer can add a full year's gratuity.
- Gratuity must be paid within 30 days of leaving. Ask HR for the working in writing.
- Fill in the nomination form for gratuity so your family gets it without delay.
- Every input is kept in the page link, so Copy link shares the exact figures.
Where people use it
Before you resign
See what you get and whether a few more weeks would add a full year.
Check HR's figure
Match the amount in your full and final settlement with the formula.
Contract staff
Fixed-term staff can get gratuity after one year under the new labour code.
Tax on a big gratuity
See how much is tax-free and what is taxed after long service.
Your PF too
See the EPF amount you take with you.
EPF and PF calculator with EPS pension, year by year
Why this one
It tells you when a part year rounds up and how much one more year adds, so you can time your exit.
- Both formulas, 26 and 30 days, with part years counted right.
- Eligibility check for 5 years and fixed-term staff.
- Tax-free and taxable split with the lifetime limit.
- What each extra year adds, as a table.
What you can change
- Last basic + DA
- Years and months of service
- Covered or not covered employer
- Private or government
- Tax-free amount used before
People find this page by searching
- gratuity calculator
- gratuity calculation formula
- gratuity for 5 years
- gratuity tax exemption limit
- gratuity calculator new labour code
- how to calculate gratuity
- gratuity eligibility
- gratuity for fixed term employees
Cite this tool
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- BibTeX
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Questions people ask
How is gratuity calculated?
If your employer is covered by the gratuity law (10 or more workers), gratuity = 15 × last monthly basic + DA × years of service ÷ 26. You get 15 days' pay for each year, and a month is taken as 26 working days. If the employer is not covered, many pay 15 × salary × completed years ÷ 30.
How are part years counted?
Under the law, a part year of more than six months counts as a full year. 10 years and 7 months counts as 11 years; 10 years and 6 months counts as 10. Where the employer is not covered, only completed years count.
When can I get gratuity?
After 5 years of continuous service with one employer. Fixed-term employees get it after 1 year under the Code on Social Security, 2020 (in force from 21 November 2025). On death or disablement there is no minimum service.
How much gratuity is tax-free?
For government employees, all of it. For others, the least of the gratuity, the formula amount and ₹20 lakh. The ₹20 lakh is a lifetime limit, so any tax-free gratuity from an earlier job reduces it. The rest is taxed as salary.
Is there a cap on gratuity?
Central government employees get gratuity up to ₹25 lakh. For others the payout follows the law's ceiling and your employer's policy; many employers pay above it, and only the tax-free part has the ₹20 lakh limit.
Which salary is used?
Your last drawn basic pay plus dearness allowance, for one month. Other allowances, bonus and overtime are not counted. Under the new labour codes, if allowances are more than half of your pay, the extra part is added to wages.