Gratuity Calculator

Calculate end-of-service gratuity (Indian Act formula).

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CurrencyLast drawn monthly salary (Basic + DA) ($)Years of service (completed)Additional months

Based on the Indian Payment of Gratuity Act formula: (15 ÷ 26) × last salary × years. Service of ≥ 6 extra months rounds up to a full year. Payable after 5 years of continuous service; statutory cap ₹20 lakh.

$242,308

Gratuity payable

Years counted

Eligible

Eligibility (5 yrs)

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Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.

Leaving a job in India or settling an employee's exit? Calculate gratuity with the Payment of Gratuity Act formula, check the 5-year eligibility rule and the ₹20 lakh cap in seconds.

How to embed Gratuity Calculator on your website

Add this free tool to your own site, blog or intranet — it's 100% free to embed. Paste this snippet where you want the tool to appear; it loads a clean, self-contained version with no ads or navigation.

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About Gratuity Calculator

Calculate end-of-service gratuity using the Indian Payment of Gratuity Act formula: (15 ÷ 26) × last drawn salary × completed years of service. See eligibility and the statutory cap instantly.

How to use Gratuity Calculator

1Enter the last drawn monthly salary (Basic + DA).
2Enter completed years and additional months of service.
3Read the gratuity payable and eligibility status.

Why use Gratuity Calculator?

✓Employees estimating their exit payout.
✓HR teams computing full-and-final settlements.
✓Financial planning around a job change.

Frequently asked questions

How is gratuity calculated in India?+

Under the Payment of Gratuity Act: gratuity = (15 ÷ 26) × last drawn salary (Basic + DA) × number of completed years. Six or more extra months count as a full additional year.

What is the eligibility for gratuity?+

Generally, an employee must complete at least 5 years of continuous service to be eligible, except in cases of death or disablement. The current statutory cap is ₹20 lakh.

Is gratuity taxable?+

For covered employees, gratuity up to the statutory limit is exempt from income tax; amounts above the limit may be taxable. Rules change, so confirm the current exemption before filing.