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Gratuity Calculator India
Calculate statutory gratuity payout based on last drawn basic salary, dearness allowance, and years of service.
About Statutory Gratuity in India
Gratuity is a statutory monetary benefit provided under the Payment of Gratuity Act, 1972 to employees who have rendered continuous service.
Formulas
- Covered Employees: Gratuity = (15 × Last Drawn Salary × Tenure) / 26
- Non-Covered Employees: Gratuity = (15 × Last Drawn Salary × Tenure) / 30
Frequently Asked Questions
What is the minimum service period required for gratuity?
A minimum of 5 continuous years of service is legally mandatory to become eligible for gratuity.
What is the statutory tax exemption ceiling?
Under Section 10(10), gratuity received by private-sector employees is exempt from tax up to ₹20 Lakh.
Are six months or more rounded up?
Under the Gratuity Act, service exceeding six months is rounded up to the next full year (e.g., 7 years and 7 months is counted as 8 years).
Is gratuity calculated on gross salary or basic?
Gratuity calculations consider only Basic Salary plus Dearness Allowance (DA); other allowances like HRA and special allowance are excluded.
How to use
Calculate in three steps
- 1Enter your valuesUse the fields above and check the units shown beside each input.
- 2Run the calculationSelect Calculate to refresh the result with your latest values.
- 3Review or shareCompare the result, reset the form, print it, or share this page.
Inputs
What you need
Last Drawn Basic Salary + DA (Monthly)₹
Total Completed Years of Serviceyrs
Covered Under the Gratuity Act?Value