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Gratuity Calculator

Work out the gratuity you get when you leave a job, from your last basic pay + DA and years of service, with the tax-free part.

Who gets gratuity

Permanent employees usually need 5 years of continuous service with the same employer. Under the new labour codes, fixed-term employees qualify after 1 year. On death or disability, gratuity is paid whatever the length of service.

What you can do with the Gratuity Calculator

Why 15 ÷ 26

The law gives 15 days of pay for every year of service, and treats a month as 26 working days. So 15 ÷ 26 of a month's pay is earned for each year.

Tax on gratuity

For government employees, gratuity is fully tax-free. For private-sector employees, up to ₹20 lakh in a lifetime is tax-free. Anything above that is added to your income.

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Frequently Asked Questions

How much gratuity for 10 years at ₹40,000?

₹2,30,769: 15 ÷ 26 × ₹40,000 × 10.

Does 4 years and 8 months count as 5 years?

For the amount, a last year of more than 6 months counts as a full year. Whether you qualify at all after 4 years 8 months is often disputed, so check with your employer.

Is gratuity part of my CTC?

Many companies show it in the CTC, at about 4.81% of basic pay, but it is only paid when you leave after qualifying.

How much gratuity for 5 years at ₹25,000?

₹72,115: 15 ÷ 26 × ₹25,000 × 5.

How much gratuity for 20 years at ₹50,000?

₹5,76,923: 15 ÷ 26 × ₹50,000 × 20.

Is there a maximum gratuity?

Under the Payment of Gratuity Act the payable amount is capped at ₹20 lakh. Employers can pay more by choice, but only ₹20 lakh in a lifetime is tax-free for private-sector employees.

Which pay is used for gratuity?

Your last drawn basic pay plus dearness allowance, not your full salary or CTC.

Do fixed-term employees get gratuity?

Under the new labour codes, fixed-term employees qualify after 1 year of service. Permanent employees usually still need 5 years.

When is gratuity paid?

The employer should pay within 30 days of it becoming due, which is usually when you resign, retire or are laid off after qualifying.

What if my employer is not covered by the Act?

Many such employers still pay gratuity, often using 15 ÷ 30 instead of 15 ÷ 26 and counting only full years. Choose "Not covered" to see that amount.

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