Gratuity Calculator

Find your gratuity amount without signing up. Enter salary and service years - see the payout instantly. No login, no account required.

Gratuity Details

50,000
10 Years
Minimum 5 years of service required for gratuity.

Estimated Gratuity Amount

0

Months of Salary Considered

0

Service Years Considered

0

Year-wise Growth Breakdown

Year Gratuity Earned (This Year) Accumulated Gratuity
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Step-by-Step Guide

Calculate Gratuity Benefits in 4 Easy Steps

Find out the exact gratuity amount you are entitled to receive upon retirement, resignation, or termination.

1
Input Basic Salary

Enter your last drawn basic monthly salary plus dearness allowance (DA) parameters.

Last Drawn Basic Dearness Allowance
2
Input Service Years

Enter the total number of years you have worked continuously at the organization.

Employment Tenure Continuous Service 5-Year Qualification
3
Organization Type

Choose whether your organization is covered under the Payment of Gratuity Act or not.

Gratuity Act Coverage Private vs Government Act vs Non-Act Rules
4
View Statement

Analyze the total statutory gratuity payable, tax-free limits, and corresponding calculation formulas.

Statutory Gratuity Tax-Exempt Portions
Local statutory formulas
No company salaries logged
100% Private local sandbox session
Retirement Tools

Understand Your Retirement & Resignation Gratuity

Determine exactly how your tenure translates into lumpsum gratuity payouts based on statutory acts.

Gratuity Act Coverage

Supports calculations for both employees covered under the Payment of Gratuity Act (15 days' salary per year) and non-covered employees (15 days' half-salary).

Tenure Rounding Logic

Automatically rounds continuous service over 6 months to the next full year (e.g. 5 years 7 months is calculated as 6 years) as mandated by law.

Statutory Ceiling Caps

Incorporates standard legal caps (such as the standard ₹20 Lakh / custom country limits) to highlight maximum tax-free claims.

Formula Explanations

Breaks down the calculations step-by-step using actual ratios (like 15/26 days formula) to make calculations clear and transparent.

Accurate formulas aligned with statutory labor laws
Salary details remain secure in your local browser sandbox
Plan your retirement finances with certified legal metrics
FAQ

Common Questions

Get clear answers about gratuity eligibility, calculation rules, limits, and taxes.

What is the minimum service period to qualify for gratuity?
In most jurisdictions (such as India), an employee must complete a minimum of 5 years of continuous, uninterrupted service with the same employer to qualify for gratuity payments. Exceptions apply in cases of death or disablement.
How is gratuity calculated for employees covered under the Act?
For employees covered under the Act, the formula is: Gratuity = (Last Drawn Salary * 15 * Years of Service) / 26, where 'Salary' includes Basic salary + Dearness Allowance. The number 26 represents working days in a month.
How is gratuity calculated for employees NOT covered under the Act?
For employees not covered under the Act, the formula is based on half a month's average salary for each completed year: Gratuity = (Last Drawn Salary * 15 * Years of Service) / 30. No rounding of fractional months applies here.
Is gratuity taxable?
For government employees, gratuity is entirely tax-free. For private sector employees covered under the Gratuity Act, gratuity is tax-exempt up to a lifetime ceiling (e.g. ₹20 Lakhs in India) or the actual calculated gratuity, whichever is lower.
Does the 5-year rule apply in case of an employee's demise?
No. If an employee passes away or becomes permanently disabled while in service, the mandatory 5-year continuous service rule is waived, and the gratuity is paid directly to their nominee or legal heir.