Gratuity Calculator (India)
Estimate end-of-service gratuity under the Payment of Gratuity Act.
Gratuity payable
₹2,59,615
Years used for calculation
9
Wage used (basic + DA)
₹50,000
Gratuity Calculator (Payment of Gratuity Act, 1972)
The Gratuity Calculator estimates the lump sum your employer must pay when you separate after 5 or more years of continuous service. The amount is governed by the Payment of Gratuity Act, 1972.
Formula (covered employees)
Gratuity = (15 × Last drawn salary × Years of service) ÷ 26
Last drawn salary = Basic + Dearness Allowance. Any service over 6 months in the final year is rounded up to a full year.
Formula (not covered)
Gratuity = (½ × Average monthly salary × Completed years of service). Only full years count.
Tax treatment
For private-sector employees, the gratuity exemption is the least of the actual amount received, ₹20,00,000, or the formula amount. Government employees receive gratuity entirely tax-free.