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Gratuity Calculator

card_giftcard Gratuity Calculator 2026: Calculate Gratuity Online

Estimate Your Gratuity Payout Based on Salary & Service Years

As per Payment of Gratuity Act, 1972 | Gratuity Formula India
lightbulb Smart Tip: Gratuity is a retirement benefit paid by employers to employees. Use this gratuity calculator to find your payout after 5 years of continuous service. Enter your details below and results will update automatically on the right.

account_balance_wallet Gratuity Calculator India: Employee Details

Use our gratuity calculator to estimate your gratuity payout as per the Payment of Gratuity Act, 1972. Adjust the values to see real-time results on the right.

Basic + Dearness Allowance
Minimum 5 years required (6 months+ rounds up)
5 yrs 15 yrs 30 yrs 40 yrs
Covered under Gratuity Act ▼
Covered under Gratuity Act
Not Covered (Govt/PSU)
Organizations with 10+ employees are covered under the Act

bar_chart Gratuity Computation Summary

ParticularsValue
Last Drawn Salary (Basic + DA)₹50,000
Years of Service (Rounded)10 years
Formula Used(15 × Salary × Years) / 26
Tax Exemption Limit₹20,00,000
Calculated Gratuity₹0
Tax-Exempt Portion₹0
Taxable Gratuity (if any)₹0
Total Gratuity Payable₹0
Tax-Exempt
₹0
Taxable
₹0
0%
0%
Tax-Exempt
Taxable
calendar_today Gratuity for Different Tenures expand_more

assignment Gratuity Tax Rules

Employee TypeTax Exemption Limit
Central Government Employees₹25 Lakh (w.e.f. May 2024)
State Government EmployeesAs per state rules (typically ₹20-25 Lakh)
Private Sector (Covered under Act)₹20 Lakh (or actual, whichever is lower)
Private Sector (Not Covered)₹20 Lakh (with different calculation)

info Gratuity Calculation: Complete Guide for Indian Employees

Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for services rendered. It's governed by the Payment of Gratuity Act, 1972.

Gratuity Formula

For Covered Employees:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26

For Government Employees:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 30

Eligibility Criteria

  • Minimum Service: 5 years of continuous service (4 years 240 days considered as 5 years)
  • Applicable Organizations: Companies with 10 or more employees
  • Exception: In case of death or disability, 5-year rule doesn't apply

When is Gratuity Paid?

  • Retirement (superannuation)
  • Resignation after 5 years
  • Death of employee (paid to nominee)
  • Disablement due to accident or disease

Frequently Asked Questions

Is gratuity taxable?
For government employees, gratuity is fully tax-exempt. For private sector employees, gratuity up to ₹20 Lakh is exempt from tax. Any amount above this is taxable as per your income tax slab.
What if I leave before 5 years?
If you leave before completing 5 years of service, you are not entitled to gratuity under the Payment of Gratuity Act. However, some employers may have their own gratuity policies.
Is gratuity part of CTC?
Yes, gratuity is usually included in the CTC (Cost to Company). Employers typically contribute 4.81% of basic salary towards gratuity.

Frequently Asked Questions

Find answers to common questions about gratuity calculator. These FAQs are designed to help you understand key concepts and make informed decisions.

1. What is gratuity and how to calculate it online?

Gratuity is a lump-sum benefit for long-term service. You can calculate your gratuity online using our free gratuity calculator, which uses the official formula as per the Payment of Gratuity Act, 1972.

2. Who is eligible to receive gratuity?

An employee is eligible for gratuity after completing at least 5 years of continuous service with the same employer. The 5-year rule is relaxed in cases of death or disablement of the employee.

3. How is the gratuity amount calculated?

For employees covered under the Act, the formula is: (Last Drawn Monthly Salary / 26) * 15 * Number of Years of Service. The last drawn salary includes basic pay and dearness allowance.

4. What is the maximum tax-free gratuity amount?

Under the Income Tax Act, 2025, the maximum tax-free gratuity limit is ₹25 Lakhs for employees covered under the Payment of Gratuity Act. For non-government employees not covered under the Act, the exempt limit is ₹20 Lakhs.

5. Does this calculator consider the latest rules?

Yes, this calculator is updated with the latest gratuity rules under the Income Tax Act, 2025, including the enhanced tax-free limit of ₹25 Lakhs, ensuring your calculations are current and accurate.

warning Disclaimer

This gratuity calculator is for informational and educational purposes only. The calculations are based on the Payment of Gratuity Act, 1972. Actual gratuity may vary based on company policies, applicable laws, and specific employment terms. For employees not covered under the Act, gratuity may be calculated differently. Always verify with your employer's HR department for accurate gratuity calculations. This tool should not be considered as legal or financial advice.

`;printWindow.document.write(html); printWindow.document.close(); setTimeout(() => { printWindow.print(); }, 250); }function grExportPDF() { grPrintComputation(); }function grExportExcel() { const data = grLastCalculation; if (!data.basic) { alert('Please calculate gratuity first'); return; }let csvContent = 'Gratuity Calculation Report\n'; csvContent += 'Generated On,' + new Date().toLocaleDateString('en-IN') + '\n\n'; csvContent += 'Employee Details\n'; csvContent += 'Last Drawn Basic Salary (Monthly),' + data.basic + '\n'; csvContent += 'Years of Service,' + data.years + '\n'; csvContent += 'Rounded Years,' + data.roundedYears + '\n'; csvContent += 'Organization Type,' + data.orgTypeLabel + '\n'; csvContent += 'Formula Used,' + data.formula + '\n\n'; csvContent += 'Gratuity Summary\n'; csvContent += 'Calculated Gratuity,' + Math.round(data.gratuity) + '\n'; csvContent += 'Tax-Exempt Portion,' + Math.round(data.taxExempt) + '\n'; csvContent += 'Taxable Gratuity,' + Math.round(data.taxableGratuity) + '\n\n'; csvContent += 'Gratuity for Different Tenures\n'; csvContent += 'Years,Covered (Act),Government\n';const tenures = [5, 7, 10, 12, 15, 20, 25, 30]; tenures.forEach(years => { const covered = Math.round((15 * data.basic * years) / 26); const govt = Math.round((15 * data.basic * years) / 30); csvContent += years + ',' + covered + ',' + govt + '\n'; });csvContent += '\nDisclaimer\nThis is for informational purposes only. Verify with your employer.\n';const blob = new Blob([csvContent], { type: 'text/csv' }); const url = URL.createObjectURL(blob); const a = document.createElement('a'); a.href = url; a.download = 'gratuity-calculation-report.csv'; a.click(); URL.revokeObjectURL(url); }// Dropdown z-index fix (reuses same pattern as income-tax-calc) function toggleItDropdown(dropdownId) { const dropdown = document.getElementById(dropdownId); document.querySelectorAll('.custom-dropdown').forEach(d => { if (d.id !== dropdownId) { d.classList.remove('open'); const parentGroup = d.closest('.taxgst-form-group'); if (parentGroup) parentGroup.style.zIndex = ''; } }); dropdown.classList.toggle('open'); const parentGroup = dropdown.closest('.taxgst-form-group'); if (parentGroup) { parentGroup.style.zIndex = dropdown.classList.contains('open') ? '100' : ''; } }// Close dropdowns on outside click document.addEventListener('click', function(e) { if (!e.target.closest('.custom-dropdown')) { document.querySelectorAll('.custom-dropdown').forEach(d => d.classList.remove('open')); document.querySelectorAll('.taxgst-form-group').forEach(fg => fg.style.zIndex = ''); } });// Auto-calculate on page load document.addEventListener('DOMContentLoaded', function() { calculateGratuity(); });

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