Gratuity calculator
Work out the gratuity your employer owes for long service, and see how much of it is tax-free, using the statutory (15 ÷ 26) formula and the ₹20 lakh ceiling.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Last drawn salary (basic + DA)
Enter your last drawn monthly salary counting basic pay plus dearness allowance only — not the whole CTC, and not HRA or other allowances.
- Years of service
Enter completed years. Under the Act the final year rounds up when six months or more are served, and you need at least five continuous years to qualify at all.
- Read the payable amount
The result applies gratuity = (15 ÷ 26) × salary × years, then splits it into the tax-free portion and any taxable excess above ₹20 lakh.
Worked example: Ten years at ₹60,000
A last drawn salary (basic + DA) of ₹60,000 a month after ten completed years of service.
What to enter
- Last drawn salary (basic + DA)
- ₹60,000/mo
- Years of service
- 10
What it shows you
- Formula
- (15 ÷ 26) × 60,000 × 10
- Gratuity payable
- ≈ ₹3,46,154
- Tax-free portion
- All of it
- Taxable portion
- ₹0 (under ₹20 lakh)
- Eligibility
- Met — 5+ years
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Market Basics11 minReading your salary slip: CTC, EPF and what actually arrivesThe gap between the number in the offer letter and the number in your bank account is large, structured, and mostly not tax. What each line is doing.
- Market Basics14 minThe day you change jobs: four accounts, four different clocksA resignation triggers more switches at once than any other event in an ordinary life. One account counts your service across employers, one counts it only within an employer, one does not care, and one has a button that quietly destroys nine years of it.