Gratuity Calculator
Estimate the gratuity payable on leaving your job.
What is gratuity?
Gratuity is a lump-sum reward employers pay for long service, mandatory under the Payment of Gratuity Act for employees with 5+ years at a company with 10+ staff. It is paid on resignation, retirement, or death/disablement.
The formula
Gratuity = (15 ÷ 26) × last drawn monthly salary × years of service. Service of 6+ months in the final year rounds up to a full year. It is tax-free up to ₹20 lakh.
Frequently asked questions
What counts as "salary" here?
Basic pay plus dearness allowance (DA), not the full CTC. Allowances and bonuses are excluded.