What is a Gratuity Calculator?
A Gratuity Calculator works out the gratuity you are due when you leave a job, from your last drawn basic pay plus DA and your years of service.
Under the Payment of Gratuity Act, gratuity is 15 days’ pay for each year of service, using 26 working days a month. You usually need 5 years of continuous service. A part year of more than six months counts as a full year.
How to use the Gratuity Calculator
- Enter last drawn monthly basic + DA.
- Enter years of service.
- Tap Calculate to see the result.
- Tap Reset to clear the fields and try again.
Who should use it
- Employees planning to resign or retire
- HR teams doing quick checks
- Anyone negotiating a job change
Key terms
- Last drawn salary
- Basic pay plus DA in your final month.
- Years of service
- Continuous years with the same employer.
- Tax-free limit
- Up to ₹20 lakh of gratuity is tax-free for most private sector employees.
Frequently asked questions
Who is eligible for gratuity?
Employees with at least 5 years of continuous service, with some exceptions.
Is gratuity taxable?
Up to ₹20 lakh is tax-free for most employees.
How is a part year counted?
More than six months is rounded up to a full year.
Does it apply to all employers?
It applies to organisations with 10 or more employees.
Is my data stored?
No. Everything you enter stays in your browser and is cleared when you close the page.
Last updated: 1 November 2026