Gratuity Calculator

Calculate your statutory gratuity payout based on tenure and last drawn salary.

₹
Yr
Calculated Gratuity₹4,61,538
Statutory Cap (Govt)₹20,00,000
Total Gratuity Payable₹4,61,538
10YTenure
Gratuity

Gratuity Calculator – Statutory Gratuity Payout Calculator

Gratuity is a statutory monetary benefit provided by employers to employees in recognition of long-term continuous service.

In India, gratuity payments are governed by the Payment of Gratuity Act, 1972 and are mandatory for commercial establishments with 10 or more employees.

What is the Gratuity Calculator?

Our Gratuity Calculator calculates your statutory gratuity entitlement based on your last drawn basic salary, dearness allowance, and completed years of continuous service.

Key Eligibility Criteria for Gratuity

Minimum continuous service requirement of 5 years with the same organization (waived in cases of demise or permanent disablement).
Calculated using 15 days of wages for every completed year of service, treating a month as having 26 working days.
A service duration exceeding 6 months in a year is rounded up to the next full year (e.g., 7 years 7 months is calculated as 8 years).

Statutory Gratuity Formula

Under the Payment of Gratuity Act, 1972, gratuity is computed as:

Calculation Formula
Gratuity = ( 15 × Last Drawn Basic Salary × Completed Years of Service ) / 26
Parameters Definition
Last Drawn Basic Salary:Monthly Basic Salary + Dearness Allowance (DA).
Completed Years:Tenure of continuous employment (rounded to nearest full year).
26:Statutory working days in a month (excluding 4 Sundays).
Statutory Cap:Maximum tax-exempt gratuity is currently capped at ₹20,00,000.
Illustration & Numerical Example

An employee with a last drawn Basic+DA of ₹80,000 retiring after 18 years of service:

• Formula: (15 × 80,000 × 18) / 26
• Calculation: 2,16,00,000 / 26 ≈ ₹8,30,769
Total Gratuity Payable = ₹8,30,769 (Completely tax-free under Section 10(10)).

How to Use the Gratuity Calculator

1

Enter your last drawn monthly Basic Salary + Dearness Allowance.

2

Enter your total completed years of service.

3

Instantly view your calculated gratuity payout and verify tax exemption status.

Frequently Asked Questions

What is the maximum tax-free gratuity in India?
The maximum tax-exempt gratuity limit under Section 10(10) of the Income Tax Act is ₹20,00,000 for non-government employees covered under the Act. Any gratuity paid beyond ₹20 Lakh is taxable at normal income tax slab rates.

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