Gratuity Calculator
Calculate the gratuity payout you're entitled to after 5+ years of continuous service.
= Fifty Thousand Rupees · use Basic + Dearness Allowance only, not full CTC
Years of Service
Under 6 months in the final year — counted as 7 completed years.
Most companies with 10+ employees are covered — formula uses ÷26 with year rounding.
How Gratuity Is Calculated
A statutory reward for long service — here's the mechanism behind the number.
Complete 5 years of service
Gratuity kicks in only after 5 years of continuous service with the same employer — except when employment ends due to death or disablement, where this condition is waived entirely.
15 days' pay for every year served
The formula pays 15 days of your last drawn Basic + DA for each year of service, using a 26-day month convention (÷26) for establishments covered under the Act.
Capped and tax-exempt up to ₹20L
The statutory ceiling is ₹20,00,000 — both for what your employer must pay and for what stays tax-free in the hands of a private-sector employee under Section 10(10)(iii).
Leaving your job soon?
Gratuity is just one part of your final payout. Our Leaving Job Calculator adds leave encashment and notice period settlement to give you a complete full-and-final estimate.