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Gratuity Calculator

Gratuity amount and eligibility with the 15/26 formula.

₹
years
months
Is your employer covered by the Gratuity Act?
Gratuity amount
₹2,30,769
₹2.31 Lakh
Years counted
8
Tax-free part
₹2,30,769
Limit ₹20 lakh (private sector)

₹50,000 × 15 × 8 ÷ 26 = ₹2,30,769

How to use

  1. 1Enter your last drawn monthly basic salary plus DA.
  2. 2Enter your years and months of service with the employer.
  3. 3Choose whether your employer is covered by the Payment of Gratuity Act.
  4. 4See your gratuity amount and whether you're eligible.

Frequently asked questions

What is the gratuity formula?

For employers covered by the Gratuity Act: Last basic + DA × 15 × years of service ÷ 26. For others: ÷ 30 instead of 26, counting only completed years.

How many years do I need to get gratuity?

At least 5 years of continuous service. The 5-year rule doesn't apply in case of death or disablement.

How are extra months counted?

Under the Act, more than 6 months in the last year counts as a full year. So 7 years 7 months is counted as 8 years.

Is gratuity taxable?

Gratuity up to ₹20 lakh is tax-free for private-sector employees. Government employees get a full exemption.

Which employers are covered by the Act?

Any business that had 10 or more employees on any day in the previous 12 months.

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