Gratuity Calculator
Calculate statutory employee gratuity payable under the Payment of Gratuity Act
₹
₹ 10,000₹ 5,00,000
Years
Calculation ResultEligible
Statutory Gratuity Entitlement
₹2,76,923
Eligible for statutory gratuity under the Payment of Gratuity Act.Tax-Free Limit
₹20,00,000
Years of Service
8 Years
How this calculator works
1
Enter your last drawn monthly Basic Salary + Dearness Allowance (DA).
2
Enter total completed years of continuous service (minimum 5 years).
3
Calculate your statutory gratuity payout up to the ₹20 Lakh tax-exempt limit.
Formula & Mathematics
Payment of Gratuity Act Formula
Gratuity = (15 × Last Basic + DA × Completed Years) / 26
Calculated assuming 26 working days in a month and 15 days of salary per year of completed service.
Worked Example
10 Years of Service with ₹65,000 Basic Salary
Basic + DA = ₹65,000, Years = 10.
• Gratuity = (15 × 65,000 × 10) / 26 = ₹3,75,000
Gratuity entitlement is ₹3,75,000.
Frequently Asked Questions
Yes, under the Payment of Gratuity Act 1972, at least 5 continuous years of service is mandatory, except in cases of death or permanent disablement.
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