Gratuity Calculator (India)
Estimate the gratuity you're owed from your last drawn salary and years of service, using the standard 15/26 formula under the Payment of Gratuity Act.
Quick answer: Gratuity = last drawn salary (basic + DA) × 15 ÷ 26 × years of service. For a ₹50,000 salary and 10 years of service that is ₹2,88,462.
Gratuity is a lump sum your employer pays for long service, generally once you've completed five years. For staff covered by the Payment of Gratuity Act, it's calculated from your last drawn salary — basic pay plus dearness allowance — and your years of service, using a fixed 15/26 formula. This calculator applies that formula, rounds your service the way the Act does, and flags the ₹20 lakh tax-free limit. If you also rent your home, our HRA exemption calculator works out that tax break too.
How gratuity is calculated
Multiply your last monthly salary by 15/26 (fifteen days' wages for each year, based on a 26-day month) and by your years of service. Service beyond six months in the final year counts as a full year.
(round the final part-year up if more than 6 months)
| Salary × Years | Gratuity |
|---|---|
| ₹30,000 × 5 years | ₹86,538 |
| ₹50,000 × 10 years | ₹2,88,462 |
| ₹80,000 × 20 years | ₹9,23,077 |
Worked example
₹50,000 last salary (basic + DA), 10 years of service:
| 15 ÷ 26 of ₹50,000 | ₹28,846 |
| × 10 years | ₹2,88,462 |
Eligibility and tax
You're generally eligible for gratuity after five continuous years with an employer, though the five-year rule is waived if service ends due to death or disablement. For covered employees, gratuity up to ₹20 lakh across your career is exempt from income tax; anything above that is taxable. Employees not covered by the Act may have a slightly different formula (using a 30-day month and average of last ten months' salary), so check which applies to you and confirm figures with your employer.