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Gratuity calculator: Check money you will receive on ₹50,000 vs ₹1 lakh vs ₹1.5 lakh salary after 10 years of service?
Mint 57 min ago·24 Oct 2026, 7:51 am
Gratuity is a lump-sum payment employers give to employees after a set period of service, rewarding their loyalty. The amount is calculated using a formula that considers the last drawn salary and the tenure of service. Under the new Code on Social Security, 2020, the maximum limit for gratuity payout is ₹20 lakh, regardless of the employee's actual salary. This makes the calculation a useful tool for financial planning, as it helps estimate a significant portion of your retirement corpus from a single employer.
For investors, understanding this payout is important for managing cash flows and planning for retirement. The gratuity amount is generally tax-free if the employee has completed five years of service with the employer. To check your potential payout, you can use an online gratuity calculator. Simply input your last drawn salary and years of service to see the estimated amount. This helps in setting realistic expectations and ensures you are aware of the benefits you are entitled to upon leaving a job.
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