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Payroll & Compliance Calculators

Gratuity Calculator

Gratuity payable on retirement or resignation after eligible service.

Enter your details

₹
Dearness allowance and any commission as a fixed percentage of turnover count; HRA and special allowances normally do not (but see the Labour Codes wage definition).
₹
Currently ₹20 lakh; editable if the limit is revised.
Estimate only. Results depend on the inputs and the rules and rates described below. Verify with the official source or a professional before filing or investing; this is not tax, legal or investment advice.

How it is calculated

Gratuity = Last drawn (basic + DA) × 15 ÷ 26 × completed years of service (part-year of more than 6 months counts as a full year). If the employer is not covered by the Act: wage × 15 ÷ 30 × completed years. Payable after 5 continuous years (no minimum on death/disablement), capped at ₹20,00,000.

Worked example

Basic + DA ₹50,000, 12 years 7 months: years counted = 13. Gratuity = 50,000 × 15 ÷ 26 × 13 = ₹3,75,000, below the ₹20 lakh ceiling.

About the Gratuity Calculator

Gratuity payable on retirement or resignation after eligible service. This free payroll & compliance tool runs entirely in your browser: nothing you type is sent to a server, and you can save, print or download the result.

What you need to enter

You will be asked for last drawn monthly basic + da (₹), completed years of service, additional months, is the employer covered by the gratuity law?, employment type, reason for leaving and a few more details. Fields marked * are required. Every field shows a hint and the allowed range.

How to use it

  1. Fill in the inputs (sample values are pre-filled so you can see how it works).
  2. Press Calculate to see the result, breakdown and chart.
  3. Use Print, Download PDF or Share to keep the result, or come back to it from your saved history.

Who it helps

Salaried individuals, business owners, investors and professionals who want a quick, transparent estimate before they file, invest or plan. If your case has special facts, our team can review it - ask for a consultation.

Results are estimates based on the rules and rates described under "How it is calculated". Laws change and individual facts differ, so confirm with official sources or a qualified professional before acting. This is not tax, legal or investment advice.

Frequently asked questions

Why 26 days and not 30?

The Act treats a month as 26 working days (excluding weekly offs), so a day's wage is monthly wage ÷ 26 and 15 days' wages = wage × 15 ÷ 26.

Do I get gratuity if I resign after 4 years 8 months?

For permanent employees the 5-year requirement is generally read as 4 years and 240 days of continuous service in some situations, but this depends on the establishment's working pattern and court rulings. Check with your HR or a labour-law adviser.

Is gratuity taxable?

For private employees covered by the Act it is exempt up to the lowest of the amount received, the formula amount and ₹20 lakh. Anything above is taxed as salary.

Need help beyond the calculator?

Talk to our tax and compliance team for advice based on your documents.