Gratuity calculator
Gratuity under the Payment of Gratuity Act — last drawn salary × 15 ÷ 26 × completed years of service.
Result
Enter the dates and last drawn salary, then choose Calculate gratuity.
- Gratuity payable
- ₹0
- Service completed
- 0
- Years used in formula
- 0
- Tax exempt
- ₹0
- Actual service
- —
- Rounding applied
- —
- Taxable portion
- —
How this is worked out
For an employer covered by the Act the formula is last drawn salary × 15 ÷ 26 × completed years. The 26 stands for working days in a month, so 15 ÷ 26 is roughly a fortnight’s pay for each year served. A part-year of six months or more counts as a full year.
For an employer not covered, the divisor is 30 instead of 26 and part-years are ignored — only whole completed years count.
Five years of continuous service are needed, except where service ends through death or disablement. Gratuity is tax exempt up to ₹20,00,000 in total across an employee’s career; anything above that is taxable. This tool is a working estimate, not a payroll ruling — check the final figure against your organisation’s rules.