🏆 Gratuity Calculator
Find out exactly how much Gratutity your employer owes you when you resign or retire, based on the Payment of Gratuity Act, 1972.
Employment Details
Are you covered under the Gratuity Act?
Last Drawn Basic Salary + DA
₹50,000
₹5k₹5L
Enter the sum of your Basic Pay and Dearness Allowance (DA) for the very last month you worked. Do not include HRA or special allowances.
Total Years of Service
5 Yrs
1 Yr40 Yrs
Additional Months
6 Mos
0 Mo11 Mos
Any extra months served beyond the full years. E.g., for 5 years 8 months, enter 8.
Checking Eligibility…
Total Gratuity Payable
₹1,73,077
The Official Formula Applied
15 × ₹50,000 × 6 ÷ 26
15 Days Salary × Last Drawn Wage × Computed Years
Gratuity Rules in India
The 5-Year Mandate
By law, an employee becomes eligible for Gratuity only after completing 5 continuous years of service with the same organization. If you resign at 4 Years and 11 Months, you are legally entitled to ₹0 Gratuity.
Rounding Off Rules
- Covered under Gratuity Act: A duration of more than 6 months is rounded up to the next full year. E.g., 5 years 7 months is considered 6 Years for calculation.
- Not Covered under the Act: The extra months are entirely ignored. 5 years 11 months is considered exactly 5 Years.
The Magic Number: 26
You might wonder why we divide your salary by 26 instead of 30. The Indian judicial system determined that a standard working month consists of 26 days (excluding 4 Sundays). Thus, your daily wage is defined as [Salary / 26].
Taxation limit
Good news! As per the latest amendments, Gratuity received up to ₹20 Lakhs is completely tax-free for all employees.