Gratuity Calculator (India)
Gratuity under the Payment of Gratuity Act — 15 days' pay per year of service, with the ₹20 lakh tax-free cap.
Formula
Gratuity rewards tenure — 5 years minimum (relaxed for death/disability), 15 days' wages per completed year, the 26-day divisor treating a month as working days. Up to ₹20 lakh is tax-exempt for private employees (unlimited for government). Service beyond 6 months in the final year rounds up for covered employees.
Not tax/legal advice. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
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.
Need gratuity calculator results fast? Analysts, founders, traders and finance professionals use the Gratuity Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Gratuity Calculator (India)
Gratuity under the Payment of Gratuity Act — 15 days' pay per year of service, with the ₹20 lakh tax-free cap. Gratuity rewards tenure — 5 years minimum (relaxed for death/disability), 15 days' wages per completed year, the 26-day divisor treating a month as working days. Up to ₹20 lakh is tax-exempt for private employees (unlimited for government). Service beyond 6 months in the final year rounds up for covered employees. The governing relationship is gratuity = (last salary / 26) × 15 × years (covered employees). The Gratuity Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Gratuity Calculator (India)
- 1Enter Last drawn basic + DA (monthly) (₹), Years of service, Covered by the Act? into the Gratuity Calculator.
- 2The result is computed automatically using gratuity = (last salary / 26) × 15 × years (covered employees) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Gratuity Calculator (India)?
- ✓Computes gratuity calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Gratuity Calculator?+
Gratuity Calculator uses gratuity = (last salary / 26) × 15 × years (covered employees). Gratuity rewards tenure — 5 years minimum (relaxed for death/disability), 15 days' wages per completed year, the 26-day divisor treating a month as working days. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Gratuity Calculator need?+
Enter Last drawn basic + DA (monthly) (₹), Years of service, Covered by the Act? and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Gratuity Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. Not tax/legal advice. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Gratuity Calculator?+
Up to ₹20 lakh is tax-exempt for private employees (unlimited for government). Service beyond 6 months in the final year rounds up for covered employees.
What is the Gratuity Calculator based on?+
The method follows authoritative sources: Payment of Gratuity Act 1972. The formula and references are shown on the page so you can verify and cite the result.
Related Finance tools
Human Life Value (HLV) Calculator
The economic value of your future earnings to your family — the income-replacement basis for sizing a life-insurance cover.
● LiveTerm Life Insurance Coverage Calculator
How much term-life cover you actually need — replacing income, clearing debts and funding goals, net of existing assets and cover.
● LiveDIME Method Life Insurance Calculator
The DIME formula — Debt + Income + Mortgage + Education — a fast, complete way to size a life-insurance cover.
● Live