Gratuity Calculator
Calculate the gratuity you're entitled to when leaving a job, based on your last salary and years of service.
Show solution steps
File your taxes the easy way
Partner offers
File your Income Tax Return online
Guided e-filing with maximum refund, in minutes.
Start filing →
Get a lifetime-free credit card
Rewards on every spend, no joining fee.
Check eligibility →
We may earn a commission if you sign up through these links, at no extra cost to you.
What is the Gratuity Calculator?
Gratuity is a lump sum an employer pays an employee as a thank-you for long service, payable after 5+ years under the Payment of Gratuity Act. It's tax-free up to a limit.
How to Calculate
For employees covered by the Act: gratuity = (15 × last salary × years of service) ÷ 26, where 26 is the number of working days in a month. It's capped at ₹20 lakh.
Formula
Gratuity = (15 × last salary × years) ÷ 26
How to Use
- Enter your details in the fields above.
- The result updates instantly as you type.
- Use Copy, Print or Download PDF to save your result.
Frequently Asked Questions
When am I eligible for gratuity?
Generally after completing 5 continuous years with an employer. A part-year over 6 months rounds up to a full year in the calculation.
Is gratuity taxable?
Gratuity is tax-free up to u20b920 lakh for covered employees; anything above that is taxable.
Was this calculator helpful?
Thanks for your feedback!