Gratuity Calculator

Estimate your gratuity amount based on your last drawn salary and years of service.

Gratuity Details

50,000
10 Years
Minimum 5 years of service required for gratuity.

Estimated Gratuity Amount

0

Months of Salary Considered

0

Service Years Considered

0

Year-wise Growth Breakdown

Year Gratuity Earned (This Year) Accumulated Gratuity
Share this Tool

Spread the word to help others work faster!


How to Calculate Gratuity Payouts

Estimate the gratuity benefit paid by your employer upon retirement or resignation — securely computed inside your browser tab.

1

Enter Last Drawn Salary

Input your last drawn monthly basic salary and Dearness Allowance (DA). Gratuity math uses this specific wage sum.

2

Specify Service Period

Enter the total number of years you have continuously worked with the employer (eligibility requires minimum 5 years).

3

Select Organization Act Rules

Choose whether your company is covered under the Payment of Gratuity Act or not. The calculator changes formulas accordingly.

4

Analyze Gratuity Benefit

Instantly view your calculated gratuity payout, tax exemption highlights, and service period rounding details.

🔒 Client-Side Calculation Security

Your salary and employment numbers are private. Gratuity estimation models calculate parameters inside client-side JS runtime — no server transmission, no logging, and no tracking.


Professional Gratuity Features

Gratuity Act Compliance

Computes payouts using the standard statutory `15/26` formula for organizations covered under the Gratuity Act.

Non-Act Formula Support

Supports calculations for companies not covered by the Act using the standard `15/30` monthly basis rules.

Automatic Service Year Rounding

Rounds fractional tenures over 6 months to the next full year automatically, conforming to legal requirements.

Tax Exemption Tracking

Compares calculated payouts against statutory tax-free exemption limits (e.g. ₹20 Lakhs) to assist with tax planning.

High-Speed Local Math Layer

Computes complex benefit algebraic equations instantly in system memory via standard JavaScript. Zero network delays, zero remote queries.


Frequently Asked Questions

1 What is gratuity and who is eligible to receive it?
Gratuity is a monetary reward given by an employer to an employee in appreciation of their service. Under standard regulations (like the Payment of Gratuity Act), employees are eligible for gratuity if they complete at least 5 years of continuous service with an organization containing 10 or more staff members.
2 What is the formula used under the Payment of Gratuity Act?
For organizations covered under the Act, the formula is: `Gratuity = (Last Drawn Salary * 15 * Years of Service) / 26`. Here, "Last Drawn Salary" represents Monthly Basic Salary + Dearness Allowance (DA), and 26 represents standard monthly working days.
3 How is service tenure rounded for gratuity calculations?
If the service period in the final year exceeds 6 months, it rounds up to the next full year. For example, working 5 years and 7 months is rounded up to 6 service years. Working 5 years and 5 months is rounded down to 5 service years.
4 Is gratuity payout taxable?
For government employees, gratuity is fully exempt from income tax. For private-sector employees, gratuity is tax-free up to a statutory limit (currently ₹20 Lakhs in India) or the actual gratuity received (whichever is lower), provided the employer is covered under the Act.
5 Are my career earnings and service details logged or shared?
No. All calculations are computed locally inside your browser window using client-side JavaScript. None of your salary figures, service terms, or calculated benefits are uploaded to servers or stored.