Gratuity calculator
Enter the last drawn basic plus dearness allowance and the length of service to see the gratuity under the standard formula.
Basic plus dearness allowance, not the full salary.
Over 6 months counts as a full year.
- Years counted
- 9
- Gratuity
- ₹2,07,692
- Tax-free portion (up to ₹20 lakh)
- ₹2,07,692
- Usually eligible (5+ years)?
- Yes
An estimate from the standard formula, not advice. Rates, ceilings and rules change, and your contract or state rules can change the result. Confirm with a qualified professional before relying on a figure.
How it is worked out
- Gratuity is 15 days' wages for each completed year of service, with a month taken as 26 days: wages × 15 × years ÷ 26.
- A part year of more than six months counts as a full year. Five years of continuous service is the usual condition.
- Wages here means basic plus dearness allowance, not the whole salary.
Under the Payment of Gratuity Act an employee is usually eligible after five years of continuous service. Death or disability are exceptions, and the labour codes treat fixed-term employees differently, so confirm the current position for your case.
Gratuity is tax-free up to a limit, currently ₹20 lakh, for those covered by the Act. Amounts above the limit are taxable. Confirm the current rules before relying on this.
Last drawn basic plus dearness allowance. Allowances such as HRA are not included.