What is the Gratuity Calculator? A gratuity calculator applies the Payment of Gratuity Act formula, 15 days of last basic pay plus DA for every year of service, to estimate what you receive when you leave or retire.
How to use the Gratuity Calculator
- Choose whether your employer is covered by the Gratuity Act.
- Enter your last monthly basic pay plus DA.
- Enter your years and extra months of service.
- See the gratuity and how much of it is tax-free.
Frequently asked questions
What is the gratuity formula?
Under the Payment of Gratuity Act: last monthly basic + DA × 15/26 × years of service, with a part-year over six months counted as a full year.
How many years do I need for gratuity?
Five years of continuous service, except on death or disability.
Is gratuity taxable?
Up to ₹20 lakh is tax-free for private-sector employees; the rest is taxed as salary.
Results are estimates based on the inputs you enter, not guaranteed returns or financial advice.