Gratuity Calculator: Calculate Your Gratuity Amount
Compute your gratuity entitlement based on salary and service years in India. Perfect for employees, HR professionals, and students.
Your Gratuity Result
Gratuity Amount
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Eligible Service Years
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Calculation Steps
Steps will appear here after calculation.
Gratuity Calculation Tips
Verify salary and service years with HR records.
Check if your organization is covered by the Gratuity Act.
Use for retirement or exit planning.
More Tools to Explore:
Your Guide to Gratuity Calculations in India
What’s a Gratuity Calculator?
This tool calculates the gratuity amount payable to employees in India under the Payment of Gratuity Act, 1972, based on salary and service years. Ideal for employees and HR professionals.
How Gratuity Is Calculated
Formula used:
For Covered Employees (Gratuity Act):
Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26
Salary = Basic + Dearness Allowance
For Non-Covered Employees:
Gratuity = (Last Drawn Salary × 15 × Years of Service) / 30
Notes:
Years rounded up if ≥ 6 months; minimum 5 years service required.
Our calculator ensures accurate results with clear steps!
Understanding Your Results
Your results include:
| Component | Description |
|---|---|
| Gratuity Amount | Total gratuity payable (₹). |
| Eligible Service Years | Rounded years of service used. |
Why Use a Gratuity Calculator?
Plan your finances effectively:
Financial Planning
Estimate retirement benefits.
Verify Entitlement
Check gratuity with HR records.
Learn Rules
Understand gratuity laws.
Key Considerations for Gratuity Calculations
Ensure accurate results:
Based on standard formulas under the Gratuity Act. Actual payouts may vary due to employer policies or tax.
Employees with ≥ 5 years of continuous service in organizations with ≥ 10 employees (covered under Act).
Gratuity up to ₹20 lakh is tax-exempt for covered employees; check current tax rules.
Frequently Asked Questions About Gratuity
Questions about calculating gratuity in India? Here are answers to guide your planning:
It computes the gratuity amount payable based on salary and service years under the Payment of Gratuity Act, 1972.
For covered employees: (Basic + DA) × 15 × Years / 26. For non-covered: (Basic + DA) × 15 × Years / 30. Years rounded up if ≥ 6 months.
Employees with ≥ 5 years of continuous service in organizations with ≥ 10 employees (or under private agreements).
Up to ₹20 lakh is tax-exempt for covered employees; excess or non-covered gratuity may be taxable.
Yes! All calculations are done locally in your browser, with no data stored.