🎁 Gratuity Calculator
Gratuity is a lump sum your employer pays when you leave after 5+ years of service (Payment of Gratuity Act, 1972). This calculator applies the standard 15/26 formula with the service-period rounding rule and flags the ₹20 lakh statutory/tax-free ceiling.
Rules & rates verified 8 July 2026
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⚠️ Educational use only. Results are close estimates based on the latest published rules and standard conventions — actual figures can differ with rounding, fees, exact dates and future rate/rule changes. This is not investment, tax or legal advice; consult a SEBI-registered adviser or CA.
How it's calculated
Gratuity = last drawn (basic + DA) × 15 ÷ 26 × years of service. Service beyond 6 months in the final year rounds up to a full year. Statutory ceiling: ₹20,00,000.
Frequently asked questions
Am I eligible for gratuity?
Generally after 5 years of continuous service with the same employer (waived on death/disablement). 4 years 240 days counts as 5 years per several court rulings — confirm with your HR.
Is gratuity taxable?
For employees covered by the Act, gratuity is tax-exempt up to ₹20 lakh (lifetime, across employers). Government employees: fully exempt.
