Finance tool

Gratuity Calculator India

Calculate statutory gratuity payout based on last drawn basic salary, dearness allowance, and years of service.

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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

  1. 1
    Enter your valuesUse the fields above and check the units shown beside each input.
  2. 2
    Run the calculationSelect Calculate to refresh the result with your latest values.
  3. 3
    Review 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