Graturity Calculator
Tools
Gratuity Calculator
Gratuity Amount
What Is Gratuity?
Gratuity is a statutory benefit paid by an employer to an employee as a reward for long and continuous service. It is governed by the Payment of Gratuity Act, 1972 and is payable when an employee resigns, retires, becomes disabled, or in case of death.
What Is a Gratuity Calculator?
A Gratuity Calculator is an online tool that helps employees estimate the gratuity amount they may receive based on their last drawn salary (Basic + Dearness Allowance) and total service period.
Gratuity Calculation Formula
- The gratuity amount is calculated using the following formula:
- Gratuity = (Last Drawn Salary (Basic + DA) × 15 ÷ 26) × Years of Service
Why Use Our Gratuity Calculator?
Our gratuity calculator is designed to provide:
- Accurate calculations based on the Gratuity Act
- Automatic application of the 5 years 6 months rule
- Instant results with Indian Rupee (₹) symbol
Who Should Use This Gratuity Calculator?
This tool is useful for:
- Salaried Employees
- Private & Government Employees
- HR Managers and Payroll Teams
- Accountants & Tax Consultants
- Individuals planning retirement or job change
FAQ
Q1. What is the minimum service period required to receive gratuity?
An employee must complete at least 5 years of continuous service to be eligible for gratuity, except in cases of death or disability.
Q2. Which salary components are considered for gratuity calculation?
Only Basic Salary and Dearness Allowance (DA) are included.
Q3. What is the 5 years 6 months rule in gratuity?
If an employee has completed 5 years and 6 months or more, the service period is rounded off to 6 years for gratuity calculation.
Q4. What is the maximum gratuity amount payable?
As per current regulations, the maximum gratuity payable is ₹20,00,000.
Q5. Is gratuity taxable in India?
- For: government employees, gratuity is fully tax-exempt
- For: private sector employees, gratuity is tax-free up to a specified limit under the Income Tax Act
Q6. Can I calculate gratuity online using this tool?
Yes, this online gratuity calculator allows you to calculate gratuity instantly by entering salary and service details.
Q7. How accurate is this gratuity calculator?
This calculator follows the Payment of Gratuity Act, 1972, but the final amount may vary depending on employer policies and applicable laws.