💰 Gratuity Calculator
Calculate your gratuity amount based on monthly salary (basic + DA) and years of service. Understand your entitlement under the Payment of Gratuity Act.
Gratuity Calculator
📐 Gratuity Calculation Formula
Standard Formula (under Gratuity Act):
Gratuity = (Last drawn monthly salary × 15/26) × Number of completed years of service
Where:
- Last drawn salary = Basic salary + Dearness Allowance (DA)
- 15/26 represents 15 days out of 26 working days per month
- Years of service: Completed years (fraction >6 months counted as full year)
Example: Salary = ₹30,000, Years = 10
Gratuity = (30,000 × 15/26) × 10 = (30,000 × 0.5769) × 10 = ₹173,076.92
📋 Gratuity Eligibility & Quick Reference
| Years of Service | Example Salary ₹20,000 | Example Salary ₹40,000 |
|---|---|---|
| 5 years | ₹57,692 | ₹115,385 |
| 10 years | ₹115,385 | ₹230,769 |
| 15 years | ₹173,077 | ₹346,154 |
| 20 years | ₹230,769 | ₹461,538 |
| 25 years | ₹288,462 | ₹576,923 |
| 30 years | ₹346,154 | ₹692,308 |
Note: Calculation uses formula (Salary × 15/26 × Years). Actual gratuity may vary based on employer policy and rounding of service years.
📖 Understanding Gratuity
What is Gratuity? Gratuity is a lump sum payment given by employers to employees as a reward for long‑term service. It is governed by the Payment of Gratuity Act, 1972 in India, applicable to establishments with 10 or more employees.
Eligibility: An employee must have completed at least 5 years of continuous service (except in case of death or disability).
Tax Treatment: For government employees, gratuity is fully exempt. For non‑government employees, the least of the following is exempt: actual gratuity received, ₹20 lakhs, or (last drawn salary × 15/26 × years of service).
Calculation of Service Years: If you have completed more than 6 months in the final year, it is rounded up to a full year. For example, 10 years 7 months = 11 years.