Gratuity Calculator
Employee Details
Formula Used
Gratuity = (Basic+DA) x 15 x Years / 26
= ₹50,0,00 x 15 x 10 / 26= ₹2.88 L
Using 26 working days (covered under Gratuity Act)
You are eligible for gratuity under the Payment of Gratuity Act.
Gratuity Amount
₹2.88 L
What if I stay longer?
Current Gratuity
₹2.88 L
10 years of service
With 2 More Years
₹3.46 L
12 years of service
Additional Gain
+₹57,6,92.31
+₹57,6,92.31 / year avg
Gratuity at Different Tenures
Basic + DA: ₹50,0,00 | Type: Private (Covered)
| Years | Gratuity | Taxable | Net (After Tax) |
|---|---|---|---|
| 5 yrs | ₹1.44 L | - | ₹1.44 L |
| 10 yrs | ₹2.88 L | - | ₹2.88 L |
| 15 yrs | ₹4.33 L | - | ₹4.33 L |
| 20 yrs | ₹5.77 L | - | ₹5.77 L |
| 25 yrs | ₹7.21 L | - | ₹7.21 L |
What Does This Tool Do?
This Gratuity Calculator helps you compute gratuity amount based on basic salary, years of service, and employment type under the Payment of Gratuity Act. It is designed for salaried employees, HR professionals, and anyone planning retirement who need quick and reliable results.
When Should You Use It?
You should use this tool when:
- •You are leaving your job and want to know your gratuity amount
- •You want to plan retirement and estimate gratuity corpus
- •You need to check if your gratuity is tax-exempt
- •You want to see how staying longer affects your gratuity
How to Use This Tool
Enter or upload the required information
Click on the calculate / convert button
Get instant results
Common Use Cases
- •Calculating gratuity on job change or retirement
- •Understanding tax implications on gratuity for private employees
- •Planning finances around gratuity payout
- •Comparing gratuity under government vs private employment
Frequently Asked Questions
What is the gratuity eligibility criteria?
You must have completed at least 5 years of continuous service with the same employer. Under the Payment of Gratuity Act, the minimum is 4 years and 240 days (approximately 4 years 8 months).
How is gratuity calculated?
For employees covered under the Act: Gratuity = (Basic + DA) x 15 x Years of Service / 26. For employees not covered: Gratuity = (Basic + DA) x 15 x Years / 30. Months over 6 are rounded up to a full year.
Is gratuity tax-free?
Government employees get fully tax-exempt gratuity. For private employees, gratuity up to Rs 20 lakh is tax-exempt under Section 10(10). Any amount above this limit is taxable as per your income tax slab.
Can I get gratuity if I resign?
Yes, if you have completed at least 5 years of continuous service, you are eligible for gratuity even if you resign voluntarily.