Gratuity Calculator

Estimate the gratuity you'll receive when you leave, retire or complete your fixed term.

₹

0–11

Employer covered by the Gratuity Act?
Gratuity
₹2,59,615
Years counted
9

Gratuity formula

  • Employer covered by the Act (10 or more employees): Last basic + DA × 15 × years ÷ 26. A final part-year of more than 6 months counts as a full year.
  • Not covered: Average basic + DA × 15 × completed years ÷ 30. Here we use the last salary as an approximation.
  • Maximum statutory gratuity: ₹20 lakh.

Labour codes (from 21 November 2025)

The calculation method is unchanged, but fixed-term employees become eligible after 1 year instead of 5, on a pro-rata basis. Under the new wage definition, if allowances exceed 50% of total pay, the excess is added to wages for gratuity. Check your payslip structure.

Example

Last basic + DA ₹52,000, 9 years 7 months of service (counted as 10): 52,000 × 15 × 10 ÷ 26 = ₹3,00,000.

Frequently asked questions

How many years do I need for gratuity?

Five years of continuous service for regular employees (with some exceptions such as death or disability). Fixed-term employees qualify after one year under the new labour codes.

Is gratuity taxable?

For non-government employees, gratuity is tax-free up to ₹20 lakh in total over your career. Government employees' gratuity is fully exempt.

Why 26 and not 30?

The Act treats a month as 26 working days, so 15 days' wages = monthly wages × 15 ÷ 26.

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