Gratuity calculator (India)
Calculate gratuity payout under the Payment of Gratuity Act 1972 based on 15/26 formula, last drawn basic salary and completed service years.
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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.
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About this tool
Calculate your statutory gratuity payout under the Payment of Gratuity Act 1972. Uses the standard 15/26 formula based on your last drawn basic salary and completed service years, with ₹20 Lakh tax exemption tracking.
How to use it
- 1 Enter your last drawn monthly Basic Salary + Dearness Allowance (DA).
- 2 Enter your completed years of continuous service and additional months.
- 3 Calculate your total gratuity entitlement, tax-free exemption, and any taxable excess.
Questions
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.
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