Gratuity Calculator
Estimate gratuity payable under the Payment of Gratuity Act with statutory ceiling.
Monthly basic salary at time of leaving.
Dearness allowance included in last drawn salary.
Completed years of continuous service.
Additional months beyond completed years. ≥6 months rounds up one year.
Gratuity = (15/26) × (basic + DA) × qualifying years. Qualifying years include completed years plus one year if extra months ≥ 6. Statutory ceiling from regulatory pack is applied when calculated gratuity exceeds the limit. Applies to establishments covered by the Payment of Gratuity Act — estimates only.
Who is eligible for gratuity?
Employees in establishments with 10+ workers who have completed at least 5 years of continuous service (or less in case of death/disablement) are generally eligible under the Act.
How are qualifying years calculated?
Completed years count fully. If you served 6 or more extra months beyond completed years, one additional year is added. Example: 10 years 7 months → 11 qualifying years.
What is the gratuity ceiling?
The government sets a maximum gratuity amount (currently ₹20 lakh for private sector). If formula gratuity exceeds this, payment is capped. This calculator applies the ceiling from the regulatory pack.
Is gratuity tax-free?
Gratuity received up to the statutory ceiling is tax-exempt for government employees. Private sector exemption limits depend on employer type and amount — consult a tax advisor for your case.
Does voluntary resignation qualify?
Yes — gratuity is payable on resignation after 5 years of service in covered establishments, subject to the same formula and ceiling.