Calculate your gratuity amount on resignation or retirement. Free India gratuity calculator as per Payment of Gratuity Act.
Gratuity is a lump sum payment made by an employer to an employee as a token of appreciation for services rendered. In India, gratuity is governed by the Payment of Gratuity Act, 1972 and is mandatory for organisations with 10 or more employees.
Gratuity is payable to employees who have completed a minimum of 5 continuous years of service. It is calculated based on your last drawn basic salary and dearness allowance and total years of service. Understanding your gratuity entitlement helps you plan your finances when changing jobs or retiring.
For organisations covered under the Gratuity Act (10+ employees):
Gratuity = (Basic Salary + DA) × 15 × Years of Service ÷ 26
The divisor 26 represents working days in a month (26 working days out of ~30 days).
For organisations not covered under the Act:
Gratuity = (Basic Salary + DA) × 15 × Years of Service ÷ 30
Maximum tax-free gratuity: ₹20 lakh (raised from ₹10L in 2019). Any gratuity above ₹20 lakh is taxable as income.
1. Enter your last drawn basic salary + DA per month
2. Enter your total years of service — must be minimum 5 years
3. Select organisation type — covered or not covered under Gratuity Act
4. Calculate to see your gratuity amount, tax-free portion, and taxable portion (if any)
• Know your entitlement: Calculate exactly what you are owed before resigning
• Tax planning: Understand how much is tax-free (₹20 lakh) and plan accordingly
• Negotiation: If employer pays less than calculated, you can challenge it legally
• Timeline: Gratuity must be paid within 30 days of the date it becomes due
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