Gratuity Calculator

Calculate gratuity amount based on last drawn salary and years of service. Includes tax exemption analysis.

6+ months rounds up to next year
Your Gratuity Amount
$553,846
(15 x Basic+DA x Years) / 26
Basic + DA$60,000
Effective Years of Service16 years
Tax Exempt (up to $20L)$553,846

Gratuity at Different Service Periods

5 years
$173,077
10 years
$346,154
15 years
$519,231
20 years
$692,308
25 years
$865,385
30 years
$1,038,462

Gratuity Rules

Eligibility
Employee must complete at least 5 years of continuous service. Applicable to establishments with 10+ employees.
Formula (Private)
Gratuity = (15 x Last Drawn Salary x Years) / 26. The 26 represents working days in a month.
Formula (Government)
Gratuity = (15 x Last Drawn Salary x Years) / 30. Government uses 30 days per month.
Tax Exemption
For private employees, gratuity up to INR 20 lakhs is tax exempt. Government employees get full exemption.
Maximum Limit
The maximum gratuity payable under the Act is INR 20 lakhs. Some companies may pay more as ex-gratia.