Gratuity is partially or fully tax-free depending on government rules and limits.

Can I get gratuity before 5 years?

No, gratuity is generally payable after 5 years except in case of death or disability.

How is gratuity calculated?

Gratuity is calculated as (15 × last drawn salary × years of service) divided by 26.

What salary is considered for gratuity?

Last drawn basic salary plus dearness allowance is used for calculation.

Gratuity Calculator

Q: Who is eligible for gratuity?

Employees who have completed at least 5 years of continuous service are eligible for gratuity.

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Service Duration

Years

Months

Last Drawn Salary (Basic + DA)

₹

Gratuity Amount

₹

Disclaimer: currenttaxyear has made reasonable efforts to ensure the accuracy of this calculator. However, the results are indicative and should not be considered financial advice. currenttaxyear is not responsible for any inaccuracies or decisions made based on this tool.

📊 Gratuity Calculator India (2026)

Use this Gratuity Calculator to estimate the amount you will receive under the Payment of Gratuity Act, 1972. It helps employees calculate gratuity based on last drawn salary and years of service.

💡 What is Gratuity?

Gratuity is a financial benefit given by an employer to an employee for long-term service. It is usually paid when an employee leaves the company after completing at least 5 years.

🧮 Gratuity Formula

Gratuity = (15 × Last Drawn Salary × Years of Service) ÷ 26

15 = 15 days salary
26 = working days in a month
Salary = Basic + Dearness Allowance

📌 Important Rules (India)

✔ Minimum 5 years of service required
✔ Months ≥ 6 are rounded to next year
✔ Tax exemption available under income tax rules

❓ FAQ - Gratuity Calculator

1. Who is eligible for gratuity?

Employees who have completed at least 4 years 190 days of continuous service.

2. Is gratuity taxable?

Gratuity is partially or fully tax-free depending on conditions.

3. Can I get gratuity before 4 years 190 days?

No, except in cases like death or disability.

4. What salary is used in calculation?

Last drawn basic salary + dearness allowance (DA).

5. What if company is not covered under the Act?

Gratuity is calculated differently (shown in alternate value).

👉 This calculator provides an estimated gratuity amount based on India rules (2026).

Free Online Gratuity Calculator