Gratuity Calculator India
Work out the gratuity you are owed, and how much of it reaches you without tax.
Gratuity Calculator
Gratuity payable
₹2,88,461.54
that is about 2.88 lakh
- Exempt from tax₹2,88,461.54
- Taxable part₹0.00
- Years counted10
Works out in your browser. Nothing you type is sent anywhere.
In short: Gratuity Calculator
On a last drawn basic pay of ₹50,000 with 10.5 years of service, counted as 11 years, the gratuity comes to ₹3,17,307.69. Of that, ₹3,17,307.69 is exempt from tax and ₹0.00 is taxable. Service of six months or more counts as a full year.
What is Gratuity?
Gratuity is a lump sum an employer pays for long service, worked out from your last drawn basic pay and the number of years you served.
How is Gratuity calculated?
Multiply the last drawn basic pay plus dearness allowance by fifteen and by the number of years counted, then divide by twenty-six. The divisor is twenty-six because the Act treats a month as twenty-six working days. For an employer outside the Act the divisor is thirty and part years are not rounded up.
- Gthe gratuity payable
- Wlast drawn basic pay plus dearness allowance, for one month
- Ythe years of service counted, with six months or more rounding up
A worked example
| Last monthly basic pay plus DA | ₹50,000 |
|---|---|
| Years of service | 10.5 years |
| Employer covered by the Gratuity Act | Yes (10 or more employees) |
| Result | |
| Gratuity payable | ₹3,17,307.69 |
| Exempt from tax | ₹3,17,307.69 |
| Taxable part | ₹0.00 |
| Years counted | 11 |
Every figure in this table is produced by the same calculation the tool above runs.
How to use this gratuity calculator
- Enter your last drawn monthly basic pay plus dearness allowance.
- Enter your years of service, using a decimal for part years.
- Say whether your employer is covered by the Act.
- Read the amount payable and the part of it that is exempt.
Questions people ask
Do I need five years of service to qualify?
Generally yes, continuous service of five years is the condition, though it is waived where service ends because of death or disablement. A few courts have allowed a shortfall of a few days in the fifth year. Your employer's own policy may be more generous than the Act.
Why divide by twenty-six and not thirty?
The Act treats a month as twenty-six working days, excluding the weekly day off, which makes the daily wage slightly higher. An employer not covered by the Act uses thirty instead, which gives a smaller figure. Choose the right option above, because the difference is noticeable.
How much gratuity is tax free?
Gratuity is exempt up to a ceiling of 2000000 across your working life, with anything above that taxed as income. The ceiling applies to the total of all gratuity received, not to each employer separately. The limit in the sources below is the one applied here.
Is gratuity paid when I resign?
Yes, resignation counts as service ending, so gratuity is payable once the qualifying period is met. It is not limited to retirement or redundancy. The employer must pay within thirty days of it becoming due.
Accuracy and sources
Where the figures come from
Estimate only. Not financial or tax advice.
Checked by the Daytoolz team on 16 October 2026. How we check our tools.
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