Gratuity Calculator
Calculate what gratuity you're entitled to using the standard formula based on your final salary and service years.
How gratuity is calculated
Gratuity is a lump sum given to you when you leave a job after at least five years of service. The formula is: final salary (basic + DA) × 15 ÷ 26 × years of service.
The 15/26 works out to 15 days' pay for each year you worked, using a 26-day month as the standard. The first ₹20 lakh is tax-free, but anything beyond that may be taxable. Check our other salary calculators for more context.
Common questions
Who gets gratuity?
If your employer is covered by the Payment of Gratuity Act, you get gratuity after five continuous years of service when you resign or retire. Some organizations may pay it earlier in specific cases.
Do I pay tax on my gratuity?
The first ₹20 lakh of gratuity is tax-free over your entire career. Anything above that is taxable. This calculator shows the formula amount—the actual tax will depend on how much you're getting.
What about my last few months if I leave mid-year?
If you leave after 6+ months in that final year, it counts as a full year. If it's less than 6 months, that final year is dropped. Use completed years for the most accurate figure.