About Gratuity Calculator
Estimate gratuity payable on retirement or resignation. Enter last drawn salary (basic + DA), years of service, and employee type for gratuity amount under the Payment of Gratuity Act, 1972.
Gratuity Formula
Use these standard formulas for accurate estimates:
Private / covered establishments
Gratuity = (15 × Last drawn salary × Years of service) / 26
Cap
Maximum gratuity ₹20 lakh (as per current rules)
Example Calculation
Example: ₹50,000 salary, 10 years service
| Component | Value |
|---|---|
| Last drawn salary | ₹50,000 |
| Years of service | 10 |
| Gratuity (approx.) | ₹2,88,461 |
Benefits of Using This Calculator
Instant results with standard financial formulas
Clear charts and tables for better decisions
Mobile-friendly — works on any device
100% free — no signup or data stored on servers
Built for Indian investors and taxpayers
Compare scenarios side-by-side where applicable
Frequently Asked Questions
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Employees completing at least 5 years of continuous service in covered establishments are generally eligible under the Payment of Gratuity Act.
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Government employees have exemptions; private sector gratuity received on retirement/death has exemption limits under IT rules—verify with a CA.
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Statutory cap is ₹20 lakh for eligible employees under current rules.
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Calculation uses last drawn salary including basic and dearness allowance (DA), not full gross with all allowances.
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