Gratuity Calculator
Gratuity Calculator — Calculate Your Retirement Benefit Instantly
Use our free Gratuity Calculator to find out how much gratuity you are eligible to receive under the Payment of Gratuity Act, 1972. Designed for employees in India, this tool works for both government and private sector calculations.
What is Gratuity?
Gratuity is a one-time payment made by employers to employees as a token of appreciation for their service, usually upon retirement, resignation, or after completing a minimum of five years of continuous service. The calculation is governed by the Payment of Gratuity Act, 1972.
Features of Our Gratuity Calculator
- Quick and accurate gratuity estimation based on basic pay and years of service.
- Mobile-friendly and works on all modern browsers.
- Supports both Government and Private sector rules.
- Provides breakdown of calculation for transparency.
Gratuity Calculation Formula
The standard formula under the Payment of Gratuity Act is:
Gratuity = (Basic Salary × 15 × Years of Service) / 26
Where:
- Basic Salary includes basic pay + dearness allowance.
- 15 represents 15 days' wages for each completed year of service.
- 26 is the number of working days in a month.
How to Use the Gratuity Calculator
- Enter your Basic Salary (monthly) in the input box.
- Enter your total Years of Service.
- Click the Calculate button.
- View your estimated gratuity instantly.
Frequently Asked Questions
Who is eligible for gratuity?
Employees who have completed at least five years of continuous service with an employer are eligible for gratuity, except in cases of death or disability where the minimum service condition is relaxed.
Is gratuity taxable?
Gratuity is tax-free up to a certain limit under Section 10(10) of the Income Tax Act, 1961. The exemption limit may vary for government and private employees.
Can gratuity be forfeited?
Yes, under certain circumstances like employee misconduct, gratuity can be partially or fully forfeited as per the provisions of the Act.