Gratuity Calculator
Calculate gratuity amount based on last drawn salary and years of service.
How to Use
- 1
Enter your last drawn salary
Type your last basic salary + dearness allowance in rupees.
- 2
Enter years of service
Enter the number of completed years you worked with the employer.
- 3
View gratuity amount
The tool calculates gratuity as per the Payment of Gratuity Act (15/26 × salary × years).
Frequently Asked Questions
Gratuity is calculated as: (Last drawn basic salary + DA) × 15/26 × number of years of service. The tool computes this automatically based on your inputs.
Under the Payment of Gratuity Act, you are eligible after completing 5 or more years of continuous service with the same employer. In case of death or disability, the 5-year requirement is waived.
Gratuity is tax-exempt up to Rs 20 lakh for employees covered under the Act. For government employees, the entire gratuity is tax-free. Any amount exceeding the limit is taxed as per your income tax slab.