Gratuity Calculator

Estimate your gratuity amount based on your last drawn salary and years of service.

Gratuity Details

50,000
10 Years
Minimum 5 years of service required for gratuity.

Estimated Gratuity Amount

0

Months of Salary Considered

0

Service Years Considered

0

Year-wise Growth Breakdown

Year Gratuity Earned (This Year) Accumulated Gratuity
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Gratuity Estimator

Calculate Retiral Gratuity Payouts

Estimate the gratuity lump sum payable to you upon retirement or resignation based on your tenure and last drawn basic salary.

1

Enter Salary

Input your last drawn monthly basic salary plus dearness allowance (DA) amount.

2

Set Years of Service

Input the total number of continuous years you served at the organization.

3

Choose Act Clause

Select whether your company is covered under the Payment of Gratuity Act.

4

Review Gratuity

Inspect your total computed gratuity lump sum and statutory tax exemptions.

Gratuity Act Compliance
Service Reward Mapping
100% Private local parsing
Layout Grid

Standard Gratuity Rules & Statutory Caps

Standard Gratuity Formulas

Computes payout using the legal 15/26 service-day models for covered firms.

Non-Act Calculations

Provides alternate mathematical models (such as 15/30 service-days) for non-covered organizations.

Tax-Free Cap Alerts

Alerts users of statutory gratuity limits (e.g. ₹20 Lakhs) to highlight taxable splits.

Pro-Rata Year Rounding

Rounds service tenures to the nearest complete year (e.g., 5 years 6 months+) automatically.

Secure Sandbox Calculations

All data processing is run locally on the client thread, preventing any transaction data leaks.

Gratuity FAQs

Frequently Asked Questions

1 What is gratuity?
Gratuity is a financial perk or reward paid by an employer to an employee in recognition of long-term continuous services rendered to the company, usually payable on retirement, superannuation, or resignation.
2 What is the minimum service period required to receive gratuity?
Under the Payment of Gratuity Act, an employee must complete a minimum of 5 years of continuous service with the same employer to become eligible for the statutory gratuity reward.
3 What formula calculates gratuity under the Gratuity Act?
For organizations covered under the Act, the formula is: Gratuity = (15 x Last Drawn Monthly Basic Salary + DA x Tenure in Years) / 26. Here, 26 represents working days per month.
4 Is gratuity taxable or tax-free?
Under current Indian tax structures, gratuity paid to government employees is completely tax-free. For private-sector employees, gratuity up to a statutory cap of ₹20,000,000 (₹20 Lakhs) is exempt from income tax.
5 Are basic salaries or career metrics recorded?
No. All salary variables and service metrics are computed entirely locally on your client browser's javascript sandboxed threads. Zero data is shared or stored on backend databases.