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.
| Completed years counted | 6 |
|---|---|
| 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
- The 26-day denominator represents working days in a month, which is why the effective daily rate is higher than a calendar-day division would give.
- The wage used is the last drawn Basic + DA, not an average and not gross salary.
- Whether a part-year beyond six months counts as a full year is a legal reading rather than an arithmetic fact, so it is a choice in this calculator instead of a hidden assumption.
- Continuous service is taken as given. Breaks, transfers and periods of unauthorised absence can affect it and are not modelled.
- The taxable-versus-exempt split is not attempted — it depends on employer type and your own circumstances.
- Death or disablement cases follow different rules and are not covered here.
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.