Finance

Instant, private, and free

Gratuity Calculator.

Estimate gratuity from salary and years of service using the stated convention.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Last drawn monthly salary

Completed years of service

Estimated gratuity

$0.00

FAQs

How does the gratuity calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

Use Cases

Plan your retirement finances

Estimate the gratuity you'll receive after completing a certain number of years with your employer. This helps in planning your post-retirement budget and investments.

Example: If your last drawn basic + DA is ₹50,000 and you've completed 20 years, your gratuity would be ₹5,76,923.

Negotiate your exit package

When leaving a job, use the calculator to know the minimum gratuity you're entitled to. This can be a reference point during resignation or retirement discussions.

Example: Check if your employer's offered gratuity matches the formula-based estimate.

Frequently Asked Questions

How is gratuity calculated using the 15/26 formula?: The formula is: Gratuity = (Last drawn basic salary + Dearness Allowance) × 15/26 × Number of completed years of service. The factor 15/26 represents 15 days of salary for each completed year, with a month considered as 26 working days.
What is the maximum gratuity amount I can receive?: Under the Payment of Gratuity Act, 1972, the maximum gratuity payable is ₹20 lakh. Any amount above this is considered ex-gratia and is not tax-exempt. This calculator estimates the amount based on the formula, but the actual payout may be capped.
Is gratuity taxable?: Gratuity received by government employees is fully tax-exempt. For non-government employees, the least of the following is exempt: actual gratuity received, ₹20 lakh, or the amount calculated using the 15/26 formula. Any excess is taxable.

Tips & Common Mistakes

Tips

Ensure you input your last drawn basic salary and dearness allowance, not gross salary, as the formula uses these components.
Only completed years of service count. If you've worked 10 years and 11 months, it's considered 10 years for gratuity calculation.
The 15/26 formula assumes 26 working days in a month. This is a standard used under the Gratuity Act.
Remember that the maximum gratuity payable is ₹20 lakh. If your calculation exceeds this, the actual amount will be capped.

Common Mistakes to Avoid

Using gross salary instead of basic salary plus dearness allowance, which overestimates the gratuity amount.
Rounding up years of service. Only completed years are considered; fractions are ignored.
Forgetting the ₹20 lakh cap, leading to an unrealistic expectation of a higher payout.

Last updated: August 13, 2026

Use Cases

Plan your retirement finances

Estimate the gratuity you'll receive after completing a certain number of years with your employer. This helps in planning your post-retirement budget and investments.

Example: If your last drawn basic + DA is ₹50,000 and you've completed 20 years, your gratuity would be ₹5,76,923.

Negotiate your exit package

When leaving a job, use the calculator to know the minimum gratuity you're entitled to. This can be a reference point during resignation or retirement discussions.

Example: Check if your employer's offered gratuity matches the formula-based estimate.

Frequently Asked Questions

How is gratuity calculated using the 15/26 formula?

The formula is: Gratuity = (Last drawn basic salary + Dearness Allowance) × 15/26 × Number of completed years of service. The factor 15/26 represents 15 days of salary for each completed year, with a month considered as 26 working days.

What is the maximum gratuity amount I can receive?

Under the Payment of Gratuity Act, 1972, the maximum gratuity payable is ₹20 lakh. Any amount above this is considered ex-gratia and is not tax-exempt. This calculator estimates the amount based on the formula, but the actual payout may be capped.

Is gratuity taxable?

Gratuity received by government employees is fully tax-exempt. For non-government employees, the least of the following is exempt: actual gratuity received, ₹20 lakh, or the amount calculated using the 15/26 formula. Any excess is taxable.

Tips & Common Mistakes

Tips

Ensure you input your last drawn basic salary and dearness allowance, not gross salary, as the formula uses these components.
Only completed years of service count. If you've worked 10 years and 11 months, it's considered 10 years for gratuity calculation.
The 15/26 formula assumes 26 working days in a month. This is a standard used under the Gratuity Act.
Remember that the maximum gratuity payable is ₹20 lakh. If your calculation exceeds this, the actual amount will be capped.

Common Mistakes to Avoid

Using gross salary instead of basic salary plus dearness allowance, which overestimates the gratuity amount.
Rounding up years of service. Only completed years are considered; fractions are ignored.
Forgetting the ₹20 lakh cap, leading to an unrealistic expectation of a higher payout.

Finance

Instant, private, and free

Gratuity Calculator.

Estimate gratuity from salary and years of service using the stated convention.

On-device calculationNo signup

Set your values

Results update as you type.

02 / ANSWER

Last drawn monthly salary

Completed years of service

Estimated gratuity

$0.00

FAQs

How does the gratuity calculator work?

Enter the requested values to see a deterministic result. Assumptions are explicit and no live market or tax data is fetched.

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Use Cases

Plan your retirement finances

Estimate the gratuity you'll receive after completing a certain number of years with your employer. This helps in planning your post-retirement budget and investments.

Example: If your last drawn basic + DA is ₹50,000 and you've completed 20 years, your gratuity would be ₹5,76,923.

Negotiate your exit package

When leaving a job, use the calculator to know the minimum gratuity you're entitled to. This can be a reference point during resignation or retirement discussions.

Example: Check if your employer's offered gratuity matches the formula-based estimate.

Frequently Asked Questions

How is gratuity calculated using the 15/26 formula?: The formula is: Gratuity = (Last drawn basic salary + Dearness Allowance) × 15/26 × Number of completed years of service. The factor 15/26 represents 15 days of salary for each completed year, with a month considered as 26 working days.
What is the maximum gratuity amount I can receive?: Under the Payment of Gratuity Act, 1972, the maximum gratuity payable is ₹20 lakh. Any amount above this is considered ex-gratia and is not tax-exempt. This calculator estimates the amount based on the formula, but the actual payout may be capped.
Is gratuity taxable?: Gratuity received by government employees is fully tax-exempt. For non-government employees, the least of the following is exempt: actual gratuity received, ₹20 lakh, or the amount calculated using the 15/26 formula. Any excess is taxable.

Tips & Common Mistakes

Tips

Ensure you input your last drawn basic salary and dearness allowance, not gross salary, as the formula uses these components.
Only completed years of service count. If you've worked 10 years and 11 months, it's considered 10 years for gratuity calculation.
The 15/26 formula assumes 26 working days in a month. This is a standard used under the Gratuity Act.
Remember that the maximum gratuity payable is ₹20 lakh. If your calculation exceeds this, the actual amount will be capped.

Common Mistakes to Avoid

Using gross salary instead of basic salary plus dearness allowance, which overestimates the gratuity amount.
Rounding up years of service. Only completed years are considered; fractions are ignored.
Forgetting the ₹20 lakh cap, leading to an unrealistic expectation of a higher payout.

Last updated: August 13, 2026