GratuityCalc

India Gratuity Calculator

The standard gratuity formula: 15 days of last drawn salary for each completed year of service, using 26 working days per month.

Last drawn monthly salary (basic + DA)

Rs.

Years of service

Gratuity amount

Rs. 2,88,462

Gratuity is payable after 5+ years of continuous service. The formula uses 26 working days per month.

What you entered

Last drawn monthly salary (basic + DA): Rs. 50,000Years of service: 10

1
Last drawn monthly salary (basic + DA)
Rs. 50,000.00= Rs. 50,000.00
2
Completed years of service
10 years= 10 years
3
Gratuity = 15 × salary × years ÷ 26
15 × Rs. 50,000.00 × 10 ÷ 26= Rs. 2,88,461.54

Result

Gratuity amount: Rs. 2,88,462

With a monthly salary of Rs. 50,000 and 10 years of service, the gratuity payable is Rs. 2,88,462.

Gratuity payable by salary and years of service

Gratuity under the Payment of Gratuity Act is 15 x last drawn monthly salary x completed years of service, divided by 26. Salary means basic plus dearness allowance, not gross pay.

Monthly salary (basic + DA)	5 years	10 years	15 years	20 years	25 years
Rs. 20,000	Rs. 57,692	Rs. 1,15,385	Rs. 1,73,077	Rs. 2,30,769	Rs. 2,88,462
Rs. 30,000	Rs. 86,538	Rs. 1,73,077	Rs. 2,59,615	Rs. 3,46,154	Rs. 4,32,692
Rs. 50,000	Rs. 1,44,231	Rs. 2,88,462	Rs. 4,32,692	Rs. 5,76,923	Rs. 7,21,154
Rs. 75,000	Rs. 2,16,346	Rs. 4,32,692	Rs. 6,49,038	Rs. 8,65,385	Rs. 10,81,731
Rs. 1,00,000	Rs. 2,88,462	Rs. 5,76,923	Rs. 8,65,385	Rs. 11,53,846	Rs. 14,42,308

The 26 in the formula is the assumed number of working days in a month, so each completed year earns roughly 15 days of pay. Eligibility normally requires five years of continuous service, which is why the table starts there - the five-year condition is waived on death or disablement. Service of more than six months in the final year is usually rounded up to a full year. Tax exemption on gratuity is capped at Rs. 20,00,000 across your career for covered employees, and the figures above are gross. Employees outside the Act's coverage may be calculated on a different basis, so check which applies to you.

Eligible after 5 years of continuous service

Under the Payment of Gratuity Act, 1972, an employee becomes eligible for gratuity after completing 5 continuous years of service — the benefit is payable on resignation, retirement, or death/disability (where the 5-year requirement is waived).

26 working days, not 30 calendar days

The formula divides by 26 (not 30) because it uses working days per month, excluding four Sundays. This is a common source of confusion but is explicitly specified in the Act and consistently upheld by courts.

Frequently asked questions

How is gratuity calculated in India?

Gratuity = Last Drawn Salary × 15 × Years of Service ÷ 26. 'Last drawn salary' means basic + dearness allowance. Example: basic + DA = ₹50,000, service = 10 years. Gratuity = ₹50,000 × 15 × 10 ÷ 26 = ₹2,88,462. Maximum tax-exempt gratuity: ₹20 lakh (any amount above is taxable).

Is gratuity taxable?

For government employees: fully exempt. For private employees covered under the Gratuity Act: exempt up to ₹20 lakh or the calculated amount, whichever is lower. For non-covered employees: exempt up to ₹20 lakh or half-month salary × years of service, whichever is lower. Any excess is taxable at your slab rate.

Do I get gratuity if I resign?

Yes, if you've completed 5 continuous years of service. Gratuity is payable on resignation, retirement, superannuation, death, or disablement. The 5-year requirement is relaxed only for death or disablement. Some companies also pay gratuity to employees with 4 years and 240+ days of service (considered as 5 years by some courts).