Gratuity Estimator
Calculate your gratuity amount at retirement
Enter Details
Calculate gratuity based on your service period
Monthly basic salary + DA
Minimum 5 years required
How Do Gratuity Calculators Work?
Gratuity calculators help you estimate the gratuity amount you'll receive upon retirement or resignation by calculating based on your last drawn salary and years of service. Here's a step-by-step explanation:
Enter Last Drawn Salary
Input your last drawn basic salary plus DA (Dearness Allowance). This is the salary you were receiving at the time of leaving service. Gratuity is calculated based on this amount.
Specify Years of Service
Enter the total years of continuous service with your employer. Minimum 5 years of service is required to be eligible for gratuity. Service periods don't carry forward between different employers.
Calculate Gratuity Amount
The calculator uses the formula: Gratuity = (Last Drawn Salary × 15/26) × Years of Service. For employees covered under Gratuity Act, the maximum gratuity is ₹20 lakhs. Gratuity is tax-free up to ₹20 lakhs.
Understanding Your Gratuity Calculation
Learn how gratuity calculations work
Understanding Gratuity Calculation
Gratuity is a statutory benefit paid by employers to employees upon retirement, resignation, or death after completing at least 5 years of continuous service. It's a form of retirement benefit and is tax-free up to certain limits.
Formula:
Gratuity = (Last Drawn Salary × 15/26) × Years of Service, Maximum ₹20,00,000Key Points:
- •Minimum 5 years of continuous service required
- •Gratuity = (Last Drawn Salary × 15/26) × Years of Service
- •Maximum gratuity is ₹20 lakhs (₹20,00,000)
- •Gratuity is tax-free up to ₹20 lakhs
- •Last drawn salary = Basic Salary + DA (Dearness Allowance)
Frequently Asked Questions
Common questions about gratuity
Disclaimer
These calculators are for estimation and educational purposes only. For personalized financial advice, please consult a qualified financial advisor or chartered accountant.
All calculations are based on standard formulas and current tax laws. Actual results may vary based on individual circumstances and applicable regulations.
How Gratuity Is Calculated in India
Gratuity is a retirement benefit paid by an employer to an employee as a token of appreciation for long-term service. Many employees are unaware of how gratuity is calculated or how much amount they are eligible to receive.
Gratuity Eligibility Rules for Employees
Not all employees are eligible for gratuity. Knowing the eligibility rules helps you understand when and how you can claim gratuity benefits.
Is Gratuity Taxable? Rules Explained Simply
Employees often wonder whether gratuity received at the time of retirement or resignation is taxable. The tax treatment depends on employment type and the amount received.