Gratuity Calculator: Calculate Your Gratuity Amount Online
By ToolZoneX Team
•
June 2026
Gratuity is a lump-sum benefit paid by employers to employees who have completed 5+ years of continuous service. It's calculated based on your last drawn salary and total service period. Understanding your gratuity helps in retirement planning.
How to Use Gratuity Calculator
1.
Enter your last drawn basic salary + DA2.
Enter total years of service3.
Select if covered under Payment of Gratuity Act4.
View the calculated gratuity amount
Key Features
- Uses the standard formula: (15 × salary × years) / 26
- Handles both Act-covered and non-covered employees
- Shows tax-exempt limit (₹20 lakh)
- Calculates for completed years and months
When to Use This Tool
•
Estimating retirement benefits•
Verifying gratuity offered during resignation•
Planning for job change financial implications•
Understanding the 5-year eligibility rule
Frequently Asked Questions
Gratuity up to ₹20 lakh is tax-exempt for employees covered under the Payment of Gratuity Act. Amounts above this are taxable.
Generally, you need 5 years of continuous service. However, in case of death or disability, gratuity is payable regardless of tenure.
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