Finance
Gratuity Calculator India
Work out gratuity payable on leaving, using the statutory formula and the five-year rule.
Interactive tool
Gratuity Calculator India
Gratuity payable
₹2,42,308
Years counted
7
Tax free up to
₹20,00,000
Choice IQ readout
Calculated on basic plus DA only, not your total CTC, which is why the number is usually smaller than people expect. Anything above Rs 20 lakh is taxable.
- Check whether your employer is covered by the Payment of Gratuity Act. Uncovered employers use a slightly different formula.
- Service of six months or more in the final year rounds up to a full year, which can be worth timing an exit around.
- Gratuity is payable within 30 days of leaving. Interest is due if the employer is late.
Tool guide
How to use this gratuity calculator india
Gratuity is calculated on basic pay plus dearness allowance only, not on your total CTC, which is why the figure is usually smaller than people expect. The statutory formula also rounds service in a way that can be worth timing an exit around: six months or more in the final year counts as a whole year. This calculator applies both rules.
Formula
Gratuity = last drawn basic + DA x 15 x years of service / 26. Service of six months or more rounds up to a full year. Capped at Rs 20 lakh.
Decision guide
When to use this gratuity calculator india
Best use case
Use this page when you need a quick first estimate before comparing products, lenders, subscriptions, or buying options. It is built for practical planning, not final professional advice.
Inputs needed
Keep these numbers ready: Last drawn basic + DA, Years of service. If you are unsure, run one conservative estimate and one optimistic estimate.
Shareable result
After calculating, use the result link to save or share the same inputs. The URL parameters keep the calculation easy to revisit.
Common examples
Readers usually use this tool for planning an exit after five years, checking a final settlement, understanding the tax-free limit. The best way to read the output is to compare scenarios instead of treating one result as a final answer.
How it works
Gratuity is calculated on basic pay plus dearness allowance only, not on your total CTC, which is why the figure is usually smaller than people expect. The statutory formula also rounds service in a way that can be worth timing an exit around: six months or more in the final year counts as a whole year. This calculator applies both rules.
Examples
- Planning an exit after five years
- Checking a final settlement
- Understanding the tax-free limit
FAQ
Do I get gratuity before five years?
Normally no. The Payment of Gratuity Act requires five years of continuous service, with exceptions only for death or permanent disability. Some employers pay ex gratia amounts earlier, but that is a company policy rather than a legal entitlement.
Is gratuity taxable?
For private-sector employees covered by the Act, gratuity is tax free up to Rs 20 lakh across your working life. Anything above that is added to your income and taxed at your slab.
Does notice period count towards service?
Time served during notice counts, since you remain employed. This matters when you are close to a year boundary, because six months or more in the final year rounds up to a full year in the formula.
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