Gratuity Calculator
Enter your basic pay and your joining and leaving dates. See how much gratuity you get, whether you have hit 5 years yet, and if staying a few more days adds a full year.
It's on your payslip. Most private jobs have no DA, so use basic alone.
Is your company covered by the Gratuity Act?
Almost every company with 10 or more employees is covered.
Your gratuity
₹2,01,923
₹2.02 L · paid with your final settlement- Basic + DA used
- ₹50,000 / month
- Your service
- 6 yrs 8 months 1 day
- Years counted
- 7 years
- Formula
- ₹50,000 × 15 ÷ 26 × 7
- Tax-free (up to ₹20 L)
- ₹2,01,923
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How gratuity is calculated
One formula, one rounding rule, one tax limit.
The formula
Gratuity = Last basic + DA × 15 ÷ 26 × Years of service. ₹50,000 × 15 ÷ 26 × 7 = ₹2,01,923
The rounding
If your company is covered by the Act, more than 6 months in your last year counts as a full year. 6 yrs 8 months = 7 years
The tax
Gratuity up to ₹20 L in your whole career is tax-free for private employees. Anything above that is added to your taxable income.
Gratuity table: quick reference
Gratuity for common basic pay and years of service (company covered by the Act).
| Basic + DA / month | 5 years | 7 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|---|
| ₹20,000 | ₹57,692 | ₹80,769 | ₹1,15,385 | ₹1,73,077 | ₹2,30,769 |
| ₹30,000 | ₹86,538 | ₹1,21,154 | ₹1,73,077 | ₹2,59,615 | ₹3,46,154 |
| ₹50,000 | ₹1,44,231 | ₹2,01,923 | ₹2,88,462 | ₹4,32,692 | ₹5,76,923 |
| ₹75,000 | ₹2,16,346 | ₹3,02,885 | ₹4,32,692 | ₹6,49,038 | ₹8,65,385 |
| ₹1,00,000 | ₹2,88,462 | ₹4,03,846 | ₹5,76,923 | ₹8,65,385 | ₹11,53,846 |
Amounts are capped at ₹20 L, the most the Act requires a company to pay.
Frequently asked questions
How is gratuity calculated?
Gratuity = last drawn basic + DA × 15 ÷ 26 × years of service. Example: ₹40,000 basic and 8 years gives 40,000 × 15 ÷ 26 × 8 = ₹1,84,615.
Do I get gratuity if I leave before 5 years?
Usually no. Permanent employees need 5 years of continuous service. The exceptions are death or disability, and fixed-term employees, who become eligible after 1 year under the new labour codes.
Does 4 years 7 months count as 5 years?
No. The rounding rule (more than 6 months counts as a full year) only applies after you cross 5 years. Some courts have counted 4 years and 240 working days as 5 years, but most companies do not, so check with HR before you resign.
Is gratuity part of my CTC?
Often, yes. Many companies show about 4.81% of basic as gratuity inside CTC. You only receive it when you leave after becoming eligible, so it does not show up in your monthly in-hand.
Is gratuity taxable?
For private employees, gratuity up to ₹20 L across your career is tax-free. Anything above that is taxed at your slab rate.
Does my notice period count towards gratuity?
Yes. Service is counted till your last working day, so serving your notice can take you past the 5-year mark or past the 6-month rounding line. Use the notice period calculator to find that date.
When will I get my gratuity?
The company must pay it within 30 days of it becoming payable, usually with your full and final settlement.
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