Gratuity Calculator
Estimate your gratuity payout instantly using the Payment of Gratuity Act formula — enter your basic salary, DA, and years of service.
Frequently Asked Questions
What is the formula for gratuity calculation in India?
For establishments covered under the Payment of Gratuity Act, 1972: Gratuity = (Basic Salary + DA) × 15 × Years of Service ÷ 26. For establishments not covered under the Act, a 15/30 divisor is commonly used instead.
What is the minimum service period for gratuity eligibility?
An employee must complete at least 5 years of continuous service to be eligible for gratuity, except in cases of death or disablement, where the 5-year rule does not apply.
Is gratuity taxable in India?
Gratuity received by private-sector employees is tax-exempt up to ₹20 lakh. Any amount above this cap is taxable as per the employee's income tax slab.
How are years of service rounded for gratuity calculation?
If an employee has completed more than 6 months of service in their final year, it is typically rounded up to the next full year for the calculation.
Want the full breakdown of eligibility, rounding rules and worked examples? Read our complete gratuity calculation guide.
Ready to simplify HR for your team?
Onboard your company in minutes and give every employee a single portal for attendance, leave, payroll and more.