Calculate your gratuity amount based on the Payment of Gratuity Act, 1972. If you’ve worked for 5+ years with an employer, you’re entitled to gratuity — a lump sum payment on resignation, retirement, or death. Enter your last drawn salary and years of service to see your entitlement.
The formula differs for government and private sector employees. Our calculator handles both: Government (qualifying service × monthly salary × ½) ÷ qualifying months and Private (15 × last salary × years) ÷ 26. Maximum gratuity limit under the Act is ₹25 lakh.
How to Use This Calculator
- Select employee type (Government or Private sector).
- Enter your last drawn basic salary + DA.
- Enter years of service.
- Click “Calculate Gratuity” to see your entitlement.
Frequently Asked Questions
After how many years is gratuity applicable?
Gratuity is payable after completing 5 years of continuous service with the same employer. However, in case of death or disability, gratuity is payable even without completing 5 years.
Is gratuity taxable in India?
For government employees, gratuity is fully tax-exempt. For private employees covered under the Act, gratuity up to ₹25 lakh is tax-exempt. For non-covered employees, the exemption is calculated based on a formula and capped at ₹25 lakh.
What is the gratuity formula for private employees?
Gratuity = (15 × Last Drawn Salary × Years of Service) ÷ 26. Here, “last drawn salary” means basic salary + DA. The number 26 represents working days in a month, and 15 represents half month’s salary per year of service.