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Gratuity Calculator
Calculate your gratuity payout per Payment of Gratuity Act, 1972 — includes the 5-year eligibility rule, the ₹20L tax exemption cap, and works for both Act-covered and uncovered employers.
Don't include HRA, special allowance, performance pay or LTA.
Days in month = 26 working days. Round up to full year if months ≥ 6.
Your gratuity entitlement
₹2,30,769
Years counted8 years
Tax exempt (Sec 10(10))₹2,30,769
Taxable portion₹0
How is gratuity calculated in India?
For employers covered under the Payment of Gratuity Act, 1972:
Gratuity = (Last Basic + DA) × 15 × Completed Years / 26
- Last drawn Basic + DA — your monthly Basic salary plus Dearness Allowance. HRA, special allowance, bonus, LTA are excluded.
- 15 days per completed year — the statutory minimum. Some employers pay 30 days.
- Divided by 26 — assumes 26 working days per month (excluding Sundays).
- Rounding rule — if you've worked 6 months or more in the final year, it counts as a full year. Less than 6 months drops off.
- 5-year minimum — you need 5 years of continuous service unless you leave due to death or permanent disability.
- Tax exemption — first ₹20 lakhs of gratuity is tax-free under Section 10(10) of the Income Tax Act. The portion above is taxable as salary.
When does my employer have to pay?
Within 30 days of becoming payable (last working day). Delay attracts simple interest at the RBI rate. If your employer refuses, file Form N with the Controlling Authority under the Labour Commissioner — there's no fee.