Gratuity Calculator

Under the Payment of Gratuity Act, 1972, for most covered employees: Gratuity = (Last drawn basic + DA) × 15 × completed years of service ÷ 26. Fifteen days' wages for each completed year, with wages treated as monthly salary ÷ 26.

Generally employees who complete at least five years of continuous service with an employer covered under the Act. Exceptions can apply in cases such as death or disablement — confirm with HR or a labour advisor for your situation.

It usually means basic wages plus dearness allowance last drawn. Other allowances are typically excluded unless your employment contract or establishment rules say otherwise.

Section 4(2) counts each completed year, and a part of a year in excess of six months, as one year. Exactly six months does not round up. Eligibility under section 4(1) still needs five years of continuous service, before that rounding.

A commonly cited private-sector ceiling for tax/exemption planning is ₹20 lakh. The calculator shows both the formula amount and the amount capped at ₹20 lakh. Confirm current statutory and tax limits with official sources before relying on them.

Yes, because the formula uses last drawn salary. Use the increment presets to project how basic may grow by exit, then estimate gratuity on that projected last salary.

Tax treatment depends on whether you are a government employee, covered under the Act, and how much you receive. Exemptions and ceilings change — verify with the Income Tax Act / a tax professional. This page is illustrative only.

No. EPF is a monthly contribution fund administered via EPFO. Gratuity is a separate lump-sum benefit paid by the employer (or a trust) after qualifying service. Use the EPF calculator for provident fund projections.

Yes. Enter a joining date (optional) or use the years-of-service control. Years of service drive eligibility and the formula; joining date is a convenient way to derive tenure.

Central government and some other categories may follow different gratuity rules. This tool focuses on the widely used Payment of Gratuity Act formula for covered private-sector style calculations.

Private-sector formula commonly used is (15/26) × last drawn basic+DA × years of service (rules and rounding vary by employer coverage). Enter salary and years to see an estimate; confirm with HR/payroll.

Under the Payment of Gratuity Act, continuous service of at least five years is generally required (with exceptions such as death/disability). This calculator assumes eligibility inputs you provide — it does not decide legal entitlement.