Skip to content
Business Calculators

Gratuity Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
10 years
5 years45 years
Verified formula Private

Gratuity amount

₹2,88,462

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Gratuity Calculator

The Gratuity Calculator works out your gratuity amount in an instant. Enter last drawn salary (basic + da) and years of service and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the last drawn salary (basic + da).
  2. Set the years of service.
  3. Read off your gratuity amount — the calculator updates automatically, with no button to press.

Formula

The Gratuity Calculator uses the formula:

Gratuity amount = 15 × Last drawn salary (Basic + DA) × Years of service ÷ 26

Worked example

For example, with last drawn salary (basic + da) of ₹50,000 and years of service of 10 years, the gratuity amount is ₹2,88,462.

Inputs used
Last drawn salary (Basic + DA) ₹50,000
Years of service 10 years
Results
Gratuity amount ₹2,88,462

Results are estimates for educational use, not professional advice.

Key terms explained

Gratuity
A lump sum paid by an employer to an employee for long service.

Frequently asked questions

For employees covered by the Payment of Gratuity Act, Gratuity = (15 × last drawn salary × years of service) ÷ 26, where salary is Basic + Dearness Allowance and 26 is the assumed working days in a month.

An employee generally becomes eligible after completing five years of continuous service with an employer, payable on resignation, retirement, death or disablement.

Yes. Gratuity is tax-exempt up to ₹20 lakh in a lifetime for covered employees. Amounts above this limit are taxable as per your income slab.

Service of six months or more in the final year is rounded up to a full year. For example, 10 years and 7 months counts as 11 years; 10 years and 4 months counts as 10.

Enter the last drawn salary (basic + da). Set the years of service. Read off your gratuity amount — the calculator updates automatically, with no button to press.

Related calculators