Skip to content
TakeHomeWorld – Pay, tax and entitlement calculators by country

Gratuity Calculator

For employees covered by the Payment of Gratuity Act, gratuity = last drawn (basic + DA) × 15 × completed years ÷ 26.

Service of more than 6 months in the final year rounds up. Employees not covered use ÷ 30 and completed years only.

How to use the Gratuity Calculator

  1. Enter your last drawn monthly basic + DA.
  2. Enter completed years and extra months of service.
  3. Choose whether your employer is covered by the Act.

Examples

₹50,000 basic, 10 years 7 months

Input: covered

Result: 50,000 × 15 × 11 ÷ 26 ≈ ₹3,17,308

Frequently asked questions

Is 5 years mandatory for gratuity?

Under the Payment of Gratuity Act, 5 years of continuous service is required (except death/disablement). Courts treat 4 years 240 days as 5 years in many cases. The new Code on Social Security reduces this to 1 year for fixed-term employees.

Is gratuity taxable?

For private employees, gratuity is exempt up to ₹20 lakh (lifetime). Government employees' gratuity is fully exempt.

Estimates, not tax or legal advice. Results come from the published rules for the cases this calculator covers; your own circumstances can change them.

Last checked 2026-10-29 by the TakeHomeWorld editors · How we calculate and check rates · Runs entirely in your browser; nothing you type is stored.