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15/26 gratuity formula calculator (India)

Calculate statutory gratuity payout using the official 15/26 formula under the Payment of Gratuity Act 1972 with ₹20 Lakh tax exemption. Free.

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₹
Only Basic Salary & Dearness Allowance count
Years
Minimum 5 years required for eligibility
Months
Under the Act, >6 months counts as 1 full year
Total Statutory Gratuity
Effective Tenured Years

Tax-Free Gratuity Exempt Sec 10(10)

Tax-free up to ₹20,00,000 (₹20 Lakh) lifetime statutory limit
Taxable Gratuity Portion

Taxed at marginal slab rates if exceeding ₹20 Lakh cap

Statutory Formula (15/26): Gratuity = (15 × Last Drawn Basic Salary × Tenure) ÷ 26.

The number 26 represents the official working days in a month (excluding 4 Sundays) under Indian labor laws.

Also with the gratuity calculator (india)

About this tool

Calculate your legal gratuity payout using the 15/26 formula specified in the Payment of Gratuity Act 1972.

How to use it

  1. 1 Enter your last drawn monthly Basic Salary + Dearness Allowance (DA).
  2. 2 Enter your completed years of continuous service and additional months.
  3. 3 Calculate your total gratuity entitlement, tax-free exemption, and any taxable excess.

Questions

Why is gratuity divided by 26 in India?

The calculation divides monthly salary by 26 because it reflects the 26 working days in a month (excluding four Sundays) under Indian labor standards.

What is the gratuity formula in India?

Under the Payment of Gratuity Act 1972: Gratuity = (15 × Last Drawn Basic Salary × Completed Years of Service) ÷ 26. 26 represents working days in a month.

What is the tax exemption limit on gratuity in India?

Gratuity received by non-government employees is tax-free up to a maximum lifetime statutory ceiling of ₹20,00,000 (₹20 Lakh) under Section 10(10).

Can I get gratuity before completing 5 years?

Generally no. 5 years of continuous service is mandatory, except if employment terminates due to death or permanent disablement.

Is my data uploaded?

No. This tool runs in your browser, so your text and files never reach our server.

Is this tool free?

Yes. It’s free to use with no sign-up and no limits for normal use.