Gratuity calculator
Work out the gratuity you are due from your last salary and your years of service.
Gratuity
₹3,46,154
- Years counted
- 10
- Per year of service
- ₹34,615
- Above the ₹20 lakh ceiling
- ₹0
How it's worked out
For employers covered by the law, gratuity is 15 days' wages for each year of service, and a month counts as 26 working days. Service of more than six months in the final year counts as a full year.
Employers not covered may still pay it. For them the usual sum uses a 30-day month and counts completed years only. The ceiling is ₹20 lakh.
The labour codes count wages more broadly than basic pay and DA, so your figure may be higher if allowances make up over half of your pay. Ask your employer how yours is worked out.
The formulaGratuity = last monthly basic + DA × 15 × years of service ÷ 26 (or ÷ 30 if the employer is not covered).
Common questions
How long do I have to work to get it?
Generally five years of continuous service. Fixed-term employees qualify after one year, and the five-year condition doesn't apply on death or disablement.
Is gratuity taxed?
For most private-sector employees, up to ₹20 lakh in a lifetime is exempt. Anything above it is taxed as salary.
More tax & salary calculators
All calculatorsIllustrative figures only, from the numbers you enter and the assumptions stated above. Rates and rules change, so check them with the provider or a qualified adviser before acting. Arthscan is not a SEBI-registered research analyst or investment adviser, and nothing here is investment advice.