Gratuity Calculator

Estimate your gratuity amount based on your last drawn salary and years of service.

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

Gratuity Calculator - Calculate Gratuity Amount Online Free

Free gratuity calculator online. Calculate your gratuity amount based on years of service and last drawn salary. Know your end-of-service benefits instantly.

💰 Gratuity Calculator - Calculate Gratuity Amount Online Free

Calculate your gratuity benefits as per Payment of Gratuity Act 1972. Know your retirement entitlement accurately!

Act Compliant

As per Gratuity Act 1972

Accurate Calculation

Precise gratuity amount

Eligibility Check

Know if you qualify

Private

No data stored or shared

How Gratuity is Calculated

Understand your gratuity calculation in simple steps.

Gratuity Formula (As per Payment of Gratuity Act):
Gratuity = (Last Drawn Salary × 15/26) × Years of Service

Where:
Last Drawn Salary = Basic + DA (Dearness Allowance)
15/26 represents 15 days wages out of 26 working days
Years of Service = Completed years (rounded to nearest 6 months)

Eligibility Criteria
  • Minimum Service: 5 continuous years with same employer
  • Applicability: Organizations with 10+ employees
  • Coverage: Factories, mines, oilfields, plantations, ports, railways, shops
  • Maximum Limit: ₹20 Lakhs (as per current amendment)
  • Tax Benefit: Fully tax-exempt under Section 10(10)
Service Year Calculation
  • Example 1: 7 years 4 months = 7 years (ignored)
  • Example 2: 7 years 7 months = 8 years (rounded up)
  • Rule: 6+ months rounds to next year, <6 months ignored
  • Continuous Service: Includes leave, layoff, maternity leave

Gratuity Calculation Examples

Employee Last Salary (Basic+DA) Years of Service Gratuity Amount
Rajesh ₹50,000 10 years ₹2,88,462
Priya ₹75,000 15 years ₹6,49,038
Amit ₹1,00,000 20 years ₹11,53,846
Sneha ₹1,50,000 25 years ₹20,00,000 (Max)

Calculation: (Salary × 15/26) × Years. Maximum limit ₹20 Lakhs as per current regulations.

Who Can Use This Calculator?

Employees
  • Planning retirement or job change
  • Near completion of 5 years service
  • Calculating total retirement corpus
  • Verifying employer's gratuity calculation
HR Professionals
  • Quick gratuity estimation for exiting employees
  • Budget planning for employee benefits
  • Compliance verification with Gratuity Act
  • Employee query resolution
Finance Teams
  • Gratuity provision calculation
  • Balance sheet liability assessment
  • Cash flow planning for retirements
  • Audit documentation support
Legal/Tax Advisors
  • Client advisory on retirement benefits
  • Tax planning for retirees
  • Dispute resolution support
  • Compliance audit assistance

Frequently Asked Questions

Gratuity payment scenarios:

  • Superannuation: Retirement after completing eligible service
  • Resignation: Voluntary resignation after 5+ years
  • Death: Paid to nominee/legal heir (no minimum service required)
  • Disablement: Total disablement due to accident/disease (no minimum service)
  • Retrenchment: Layoff or closure of establishment
  • Important: Employer must pay within 30 days of eligibility, else interest applicable

Tax treatment of gratuity:

  • Government Employees: Fully tax-exempt (any amount)
  • Private Employees (Covered under Act): Least of following is exempt:
    • Actual gratuity received
    • ₹20 Lakhs (maximum limit)
    • Calculated amount (15/26 × salary × service)
  • Private Employees (Not Covered): Least of:
    • Actual gratuity received
    • ₹20 Lakhs
    • Half month average salary × completed years
  • TDS: No TDS on gratuity payments

Benefits

Why Use Gratuity Calculator?
  • Retirement Planning: Know your gratuity corpus for financial planning
  • Job Change Decisions: Factor gratuity loss when switching jobs before 5 years
  • Verification: Cross-check employer's gratuity calculation
  • Awareness: Understand your statutory rights
  • Tax Planning: Know tax-exempt portion for accurate filing
Tool Features
  • Act Compliant: Follows Payment of Gratuity Act 1972 formula
  • Eligibility Check: Automatically verifies if you qualify
  • Detailed Breakdown: Shows calculation step-by-step
  • Current Limits: Updated with ₹20 Lakh maximum cap
  • 100% Free: Unlimited calculations, no registration

Calculate Your Gratuity Now!

Know your retirement benefits—free forever!