← All calculators/Salary and tax
Gratuity calculator.
The lump sum your employer owes when you leave after enough years. Fifteen days of pay for every year you worked, and the rounding matters more than people think.
Under the Act, more than six months rounds up to a full year.
My employer is covered by the Gratuity Act
Any business with ten or more employees is. If unsure, pick yes.
Gratuity you are owed
₹2,76,923
8 years counted, at 15 days' pay for each, on a 26-day month.
- Years counted
- 8
- Tax free
- ₹2,76,923
- Taxed at your slab
- ₹0
How it adds up
- Last basic + DA, a month₹60,000
- times15 days' pay (of 26), a year₹34,615
- timesYears counted8
- equalsGratuity₹2,76,923
What this assumes
Last drawn basic plus DA. Under the Gratuity Act a month counts as 26 days and a final part-year over six months counts as a full year; outside it, 30 days and completed years only. Usually needs five years of service, less for fixed-term staff under the new labour codes. Up to ₹20 lakh is tax free.
Rules and rates from
- Ministry of Labour (Payment of Gratuity Act) (opens in a new tab)
- Income Tax Department (opens in a new tab)
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
Spotted a mistake? Tell me →