Does this calculator apply outside India?

No, it is built around India's Payment of Gratuity Act, 1972. Other countries generally do not have an equivalent statutory gratuity scheme.

Am I eligible for gratuity with less than 5 years of service?

Generally no, 5 years of continuous service is required, except in cases of death or disablement.

Government employees receive gratuity fully tax-exempt. Private-sector employees are exempt up to Rs 20,00,000, with any excess taxable.

Gratuity Calculator

Estimate gratuity payable under India's Payment of Gratuity Act, 1972

Last Drawn Monthly Salary (Basic + DA, ₹)

₹

Years of Service

yrs

Organisation Type

What is the Gratuity Calculator?

Gratuity is a lump-sum benefit an employer pays to an employee as a token of appreciation for continuous service, typically at retirement, resignation after a qualifying period, or termination. This calculator is based on India's Payment of Gratuity Act, 1972, and is not applicable outside India — other countries have entirely different (or no) statutory severance/long-service payment schemes, so this tool should not be used to estimate similar entitlements elsewhere.

How to Use the Gratuity Calculator

Enter your last drawn monthly salary — Basic pay plus Dearness Allowance (DA), as defined under the Act.
Enter your total years of service with the employer.
Select whether your organisation is covered under the Payment of Gratuity Act — most establishments with 10 or more employees are covered.
Read the result — the estimated gratuity amount payable, capped at the statutory tax-exempt limit.

Gratuity Formula

Gratuity (covered employer) = (Last Drawn Salary × 15 × Years of Service) ÷ 26
Gratuity (not covered) = (Last Drawn Salary × 15 × Years of Service) ÷ 30

For employers covered under the Act, the formula counts 15 days' wages for every completed year of service, based on a 26-working-day month. For employers not covered under the Act, some organisations instead use a 30-day month as a matter of internal policy — actual practice can vary.

Example Calculation

An employee with a last drawn salary (Basic + DA) of ₹50,000 and 8 completed years of service, at an organisation covered under the Act: Gratuity = (₹50,000 × 15 × 8) ÷ 26 = ₹2,30,769 (approximately).

Eligibility and Key Rules (India)

Minimum service required: Generally 5 years of continuous service, except in cases of death or disablement, where the minimum service requirement is waived.
Tax exemption: Gratuity received is tax-exempt up to ₹20,00,000 under current rules; any amount above this limit is taxable as per applicable income tax provisions.
Rounding of service: A period of service of more than 6 months in the final year is typically rounded up to the next full year for calculation purposes.

Frequently Asked Questions

No. It's built specifically around India's Payment of Gratuity Act, 1972. Countries like the US, UK, Canada and Australia don't have an equivalent statutory gratuity scheme, so this calculator isn't applicable there.

Generally no, 5 years of continuous service is the minimum requirement. The main exceptions are if employment ends due to the employee's death or disablement, in which case the 5-year rule doesn't apply.

Gratuity received by government employees is fully tax-exempt. For private-sector employees covered under the Act, it's exempt up to ₹20,00,000; any amount received beyond that limit is added to taxable income.

Results are estimates for general reference only, not legal or tax advice — consult your HR department or a professional for your exact entitlement.