Savings
Gratuity Calculator
Calculate the gratuity amount payable upon retirement as per the Payment of Gratuity Act.
Formula
Gratuity = (Last Salary × 15 × Years) / 26
Last Drawn Salary, Years of Service
Results
Enter values above to see results
Gratuity = (Last Salary × 15 × Years) / 26
Gratuity is calculated under the Payment of Gratuity Act 1972. It equals (Last drawn salary × 15 × years of service) / 26. For every completed 6-month period, one year of service is counted. Tax-free gratuity limit is ₹25 lakh under Section 10(10).
A employee with last drawn salary ₹75,000 and 25 years of service
Input Values
Calculation
Applying the formula with the input values above:
Results
Gratuity Amount
₹10,81,731.00
- 1Enter your last drawn monthly salary (basic + DA only, excluding allowances).
- 2Input the number of completed years of service (15 days per completed year).
- 3Gratuity is payable after 5+ years of continuous service with one employer.
- 4The maximum tax-free gratuity is ₹25 lakh under Section 10(10).
- 5Anything above ₹25 lakh is taxed as salary income.
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