Gratuity Calculator
With a last drawn basic + DA of ₹50,000 and 10 years of service, gratuity is about ₹2,88,462, within the ₹20 lakh tax-free limit.
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Employees covered by the Payment of Gratuity Act (now part of the Code on Social Security, 2020) generally become eligible after 5 years of continuous service. Gratuity is 15 days' salary for each completed year of service, based on a 26-day month.
How the gratuity calculation works
Gratuity = Last monthly (basic + DA) × 15 × years of service ÷ 26
Example
With a last drawn basic + DA of ₹50,000 and 10 years of service, gratuity is about ₹2,88,462.
Gratuity Calculator scenarios
| Basic + DA | 5 years | 10 years | 20 years | 30 years |
|---|---|---|---|---|
| ₹25,000 | ₹72,115 | ₹1,44,231 | ₹2,88,462 | ₹4,32,692 |
| ₹50,000 | ₹1,44,231 | ₹2,88,462 | ₹5,76,923 | ₹8,65,385 |
| ₹75,000 | ₹2,16,346 | ₹4,32,692 | ₹8,65,385 | ₹12,98,077 |
| ₹1,00,000 | ₹2,88,462 | ₹5,76,923 | ₹11,53,846 | ₹17,30,769 |
| ₹1,50,000 | ₹4,32,692 | ₹8,65,385 | ₹17,30,769 | ₹25,96,154* |
What changes the result
- Last drawn basic salary plus DA — allowances and bonuses are not included.
- Completed years of service: in the last year, more than 6 months is usually rounded up to a full year.
- Whether your employer is covered by the Act; if not, gratuity is at the employer’s discretion and may use a 30-day month.
- The ₹20 lakh ceiling on gratuity payable under the Act and on the tax exemption for non-government employees.
How to use this calculator
- Enter your last drawn monthly basic salary plus DA.
- Enter your completed years of service.
- Read the gratuity amount and how much of it is tax-free.
Gratuity Calculator FAQs
Is gratuity taxable?
For private-sector employees, gratuity up to ₹20 lakh is tax-free; anything above is taxable.
Is 5 years of service always required?
No. The 5-year condition does not apply on death or disablement. Under the Code on Social Security, 2020, fixed-term employees become eligible after one year of service.
What do the starred amounts in the table mean?
They exceed ₹20 lakh. Gratuity payable under the law is capped at ₹20 lakh; an employer may pay more, but the excess is taxable for non-government employees.
Results are estimates for planning only and are not financial, tax or investment advice. Check figures with your bank, fund house or tax adviser before acting on them.