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Gratuity Calculator

Gratuity is a lump sum payable on exit after a qualifying period of continuous service. The formula is simple; the two things that actually decide the number are how long you must serve to qualify, and whether a part-year counts.

Nothing you type here is sent to us. This calculator runs entirely in your browser. Only the statutory rates come from our servers.

How part years count
Gratuity entitlement
Completed years counted6
Computed amount
15 × wage × years ÷ 26
₹1,55,769
Statutory ceiling₹20,00,000
Payable₹1,55,769

Gratuity up to the statutory ceiling is generally exempt from income tax for non-government employees; anything above it is taxable. That treatment depends on your circumstances, so this calculator does not attempt the split.

Formula

Gratuity = (15 × last drawn (Basic + DA) × completed years) ÷ 26

Payable = min(Gratuity, ₹20,00,000)

Eligibility: 5 years for regular employees,
             1 year for fixed-term employees.

BRL-11 · Code on Social Security, 2020 · rates effective 1 Jan 2026 · content version 52df016f

Assumptions

This calculator is informational and not legal, tax or actuarial advice. Statutory rates are researched from public sources and pending legal review. Verify against the source notification and your own payroll before relying on any figure here.