Gratuity Calculator

Enter your last drawn basic + DA and your length of service. The calculator applies the 15/26 formula, rounds service over six months up to a full year and applies the ₹20 lakh ceiling.

Quick answer

Gratuity = 15 ÷ 26 × last drawn monthly wages (basic + DA) × completed years of service, with a part year of more than six months counted as a full year. The maximum is ₹20 lakh. Under the Code on Social Security, in force from 21 November 2025, fixed-term employees qualify after one year instead of five.

How to use the Gratuity Calculator

Enter your last drawn monthly basic + DA.
Enter completed years and any extra months of service.
Read the gratuity amount and how it was worked out.

Worked example

Basic + DA ₹60,000, service 7 years 8 months: counted as 8 years, gratuity = 15 ÷ 26 × 60,000 × 8 = ₹2,76,923.

Formula

Gratuity = 15 ÷ 26 × Monthly wages × Years of service (max ₹20,00,000)

Frequently asked questions

Who is eligible?

Permanent employees after 5 years of continuous service, fixed-term employees after 1 year, and in case of death or disablement at any time.

What counts as wages?

Basic pay, DA and retaining allowance. Under the Labour Codes, if allowances exceed 50% of total pay, the excess is added back to wages.

Is gratuity taxable?

For private-sector employees, gratuity up to ₹20 lakh received on retirement or leaving is exempt; government employees' gratuity is fully exempt.

Related tools

Something not working, or a result looks wrong? Tell us