Gratuity Calculator
Gratuity is a lump sum your employer pays when you leave after long service. This calculator works out the amount, whether you qualify, and how much of it is tax-free.
How to use it
- Enter your last monthly basic pay plus DA.
- Enter your years and months of service.
- Choose whether your employer is covered by the Payment of Gratuity Act.
How it is calculated
Covered by the Act: gratuity = last basic + DA x 15 / 26 x years of service (6 months or more counts as a full year). Not covered: average pay x 15 / 30 x completed years.
Frequently asked questions
How much gratuity for 10 years with Rs 50,000 basic?
About Rs 2.88 lakh: 50,000 x 15 / 26 x 10.
Am I eligible after 4 years and 8 months?
Courts have usually counted 4 years and 240 days as 5 years for employers covered by the Act. Fixed-term employees qualify after 1 year.
Is gratuity taxable?
For government employees it is fully tax-free. For others, up to Rs 20 lakh is tax-free.
What counts as wages now?
Basic pay plus DA. Under the Labour Codes, if that is below 50% of your total pay, the excess allowances are added back.