Gratuity Calculator
Your reward for loyalty. Calculate how much you will get when you leave.
Gratuity is a lump sum benefit paid by an employer to an employee as a token of gratitude for the services rendered. However, there is a catch: you are eligible only if you complete 5 continuous years of service. Use this calculator to estimate your gratuity payout based on your last drawn salary and tenure.
Most private companies are "Covered".
Total Payable Amount
₹0
Analysis
For every year of service, you get 15 days of salary as a loyalty bonus.
It is a lump sum reward for long-term service. Up to ₹20 Lakhs is completely tax-free.
🧮 How is Gratuity Calculated?
The Payment of Gratuity Act, 1972 mandates the following formula for employees covered under the act:
15 Days
Wages for 15 days are paid for every completed year of service.
Last Drawn Salary
Basic Salary + Dearness Allowance (DA). No HRA or Special Allowance.
26 Days
The number of working days in a month (excluding Sundays).
The "5-Year" Eligibility Trap
Many employees resign after 4 years and 8 months, thinking it will be rounded off to 5 years.It will NOT.
- To be eligible, you must complete exactly 5 full years of continuous service.
- Exception: In case of death or disablement of the employee, the 5-year rule is waived off.
- Rounding Off: If you have worked for 5 years and 7 months, it is rounded off to 6 years for calculation. If 5 years and 4 months, it is counted as 5 years.
Is Gratuity Tax-Free?
Govt Employees
Gratuity received by Central/State Govt employees is 100% Tax-Free.
Private Sector
Tax-free up to a maximum limit of ₹20 Lakhs in a lifetime. Any amount above this is added to your income and taxed at your slab rate.
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Frequently Asked Questions
When am I eligible for gratuity?▼
Gratuity is payable after completing at least five years of continuous service with the same employer.
Is gratuity taxable?▼
Gratuity is fully tax-exempt for government employees, while private employees get exemption up to the prescribed limit.