Free Online Gratuity Calculator
Use this free Gratuity Calculator to estimate gratuity amount in India from last drawn Basic plus Dearness Allowance, service years, extra months, and employer coverage assumptions.
The calculator applies the common Payment of Gratuity Act formula for covered monthly-rated employees: last drawn wage multiplied by 15/26 and completed service years, with service rounded when the part year exceeds six months.
Gratuity rules can be legal and payroll-specific. Use this calculator for planning only, then confirm the final payable amount and tax treatment with HR, payroll, or a qualified tax professional.
Key Features
When to Use This Gratuity Calculator
How to Use the Gratuity Calculator
- 1. Enter your last drawn monthly Basic plus DA.
- 2. Add completed years and extra months of continuous service.
- 3. Choose whether your employer is covered under the Payment of Gratuity Act.
- 4. Select employee type and exemption assumptions.
- 5. Review estimated payable gratuity, tax-exempt amount, and taxable amount.
Gratuity Calculator FAQ
Is this Gratuity Calculator free?
Yes. The Gratuity Calculator is free and does not require login.
Which salary should I enter for gratuity?
Use last drawn monthly Basic plus Dearness Allowance. Do not enter full CTC unless your employer explicitly uses that structure for gratuity.
What is the gratuity formula under the Payment of Gratuity Act?
For covered monthly-rated employees, the common formula is Basic plus DA multiplied by 15 divided by 26 multiplied by eligible service years.
Is 5 years mandatory for gratuity?
Generally gratuity is payable after 5 years of continuous service, but the 5-year condition does not apply in death or disablement cases.
Is gratuity fully tax-free?
Government employee gratuity is generally fully exempt. For private or non-government employees, exemption is subject to limits and conditions, so verify with payroll or a tax professional.