Tax Calculators

Gratuity Calculator

Compute gratuity payable as per the Payment of Gratuity Act on completion of 5+ years of service.

About the calculator

What is the Gratuity Calculator?

The Gratuity Calculator is a free online tool that helps you make informed decisions about your money. Enter your numbers and the calculator gives you instant, accurate results.

Use it to compare scenarios, plan goals and validate assumptions — all without signing up.

Formula used
  • Gratuity
    Gratuity = Last Salary × 15 × Years / 26 (covered employees)

Why use the Gratuity Calculator?

Financial planning works only when it's specific. The Gratuity Calculator converts assumptions into concrete numbers — so you can choose between scenarios with confidence rather than guesswork.

How it helps

By tweaking inputs and instantly seeing the impact, you build intuition for how the underlying variables interact. This is far more useful than abstract formulas alone.

What to remember

Calculators show possible outcomes based on the assumptions you provide. Real-world results may vary; review your plan periodically and adjust as your income, goals and circumstances evolve.

Frequently Asked Questions

Employees with 5+ years of continuous service.
₹20 lakh lifetime limit (private sector).
Yes — accrued each year (~4.81% of basic).
No gratuity, except in case of death or disablement.
Excess above ₹20L is taxed at slab; for govt employees fully exempt.
15 days' wages × years of service ÷ 26 (working days per month).

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