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Gratuity Calculator
Estimate the gratuity payable from your last drawn monthly salary and your years of service.
Gratuity payable
How the years are counted
Six or more months in the final year count as one extra full year; fewer than six months are ignored. That is why 10 years and 7 months count as 11 years, while 10 years and 5 months count as 10.
Based on the formula in India’s Payment of Gratuity Act. Part of the gratuity may be tax-exempt, subject to current limits — this is an estimate only, not financial advice.
How it works
Gratuity = (last drawn monthly salary × 15 ÷ 26) × effective years Effective years = completed years + 1 if final-year months ≥ 6, else completed years
Worked example: a last drawn salary of ₹60,000 gives ₹60,000 × 15 ÷ 26 = ₹34,615.38 for each year of service. Over 10 years that is ₹34,615.38 × 10 = ₹3,46,154.
Frequently asked questions
Why 15 days out of 26?
The Act treats a month as 26 working days, and gratuity accrues at 15 days’ wages for each completed year. That is where the 15 ÷ 26 comes from.
I worked 10 years and 7 months. How many years count?
Eleven. Six or more months in the final year count as a full extra year, so 10 years and 7 months count as 11 years of service.
Is the whole gratuity tax-free?
Not always. A portion may be exempt under current tax rules and limits, and the rest can be taxable. Check the limit that applies in the year you receive it.
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