How is gratuity calculated

Gratuity is calculated as (Last Drawn Salary - Years of Service - 15) / 26 as per Indian gratuity rules.

Who is eligible for gratuity

Employees who have completed at least five years of continuous service are eligible for gratuity.

Gratuity is tax-exempt up to a specified limit under Indian income tax laws, subject to conditions.

Gratuity Calculator - Calculate Gratuity Amount

Employee Details

Last Drawn Monthly Salary (₹)

Years of Service

Gratuity Amount ₹0

What is Gratuity

Gratuity is a lump-sum benefit paid by employers to employees as a reward for long-term service. It is governed by the Payment of Gratuity Act in India.

How Gratuity is Calculated

Gratuity is calculated using the formula: (Last Drawn Salary - Years of Service - 15) / 26.

Why Use a Gratuity Calculator

Estimate gratuity payout easily
Plan retirement benefits
Understand employer obligations

Note: This calculator provides estimated results. Actual gratuity may vary based on employer policies.

Frequently Asked Questions

Is five years of service mandatory for gratuity

Yes. In most cases, employees must complete at least five years of continuous service.

Does gratuity include bonuses

No. Gratuity is calculated based on basic salary and dearness allowance only.

Is gratuity paid monthly

No. Gratuity is paid as a one-time lump-sum amount when an employee leaves the organization.