Finance / India
Gratuity Calculator: Estimate in Rupees
Estimate Act-covered gratuity from last basic + DA and service years, with the greater-than-six-month rounding rule.
Gratuity Calculator: Estimate in Rupees: For monthly-rated employees covered by the Payment of Gratuity Act, applies 15 × last monthly basic + DA × counted years ÷ 26. Additional service exceeding six months rounds up; exactly six months does not. Shows the formula amount before caps and an illustrative accrual table at the entered last salary. Eligibility and tax are not determined. Runs 100% locally in your browser with zero server file uploads.
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Results are estimates. Rates, payment dates, fees and taxes can change the actual amount.
For monthly-rated employees of employers covered by the Payment of Gratuity Act: gratuity = 15 × last monthly basic + DA × counted years ÷ 26. A part-year exceeding six months counts as another year; exactly six months does not.
The ₹20 lakh tax-exempt ceiling is subject to the applicable conditions and prior exempt gratuity. This page shows the formula amount before statutory caps; it does not determine eligibility or tax. Five years of continuous service is generally required, with exceptions such as death or disablement.
Income Tax Department: gratuity exemption
The year-by-year table applies your last salary to each counted service year. It shows an illustrative formula accrual, not an annual payment or entitlement before eligibility. Special employee categories may use different rules.
Illustrative gratuity accrual
Years 1 to 10Chart scale: ₹0 to ₹2,88,461.54
| Year | Deposits (none) | Annual payments (none) | Interest (none) | Illustrative gratuity accrual |
|---|---|---|---|---|
| 1 | ₹0 | ₹0 | ₹0 | ₹28,846.15 |
| 2 | ₹0 | ₹0 | ₹0 | ₹57,692.31 |
| 3 | ₹0 | ₹0 | ₹0 | ₹86,538.46 |
| 4 | ₹0 | ₹0 | ₹0 | ₹1,15,384.62₹1.15 lakh |
| 5 | ₹0 | ₹0 | ₹0 | ₹1,44,230.77₹1.44 lakh |
| 6 | ₹0 | ₹0 | ₹0 | ₹1,73,076.92₹1.73 lakh |
| 7 | ₹0 | ₹0 | ₹0 | ₹2,01,923.08₹2.02 lakh |
| 8 | ₹0 | ₹0 | ₹0 | ₹2,30,769.23₹2.31 lakh |
| 9 | ₹0 | ₹0 | ₹0 | ₹2,59,615.38₹2.6 lakh |
| 10 | ₹0 | ₹0 | ₹0 | ₹2,88,461.54₹2.88 lakh |
Act formula and rounding
Ministry of Labour and Employment, gratuity benefits: https://labour.gov.in/sites/default/files/final_ar_english_21-7-19.pdf
For a monthly-rated employee, 15 days’ wages use the 26-day divisor. A part-year exceeding six months counts as a full year.
Tax-exempt ceiling
Income Tax Department, income from salary: https://www.incometaxindia.gov.in/w/income-from-salary
The ₹20 lakh ceiling for applicable Act-covered non-government gratuity exemptions is subject to conditions and prior exemption. This page computes the uncapped formula only.
How to use it
- Enter amounts and choose the calculation options shown.
- Adjust the rate and duration to match your assumptions.
- Read the estimate, year-by-year chart and table, then download the CSV.
Privacy & limitations
Calculations and CSV exports run in your browser. Your financial inputs are not uploaded.
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Frequently asked questions
How are additional months rounded?
Seven to eleven additional months add a year. Zero to six additional months do not.
Is ₹20 lakh always tax exempt?
No. The applicable tax-exempt ceiling is subject to conditions and prior exempt gratuity. The formula amount is shown before statutory caps.
Can I receive gratuity before five years?
Five years of continuous service is generally required, with exceptions including death or disablement. This calculator does not decide eligibility or special category rules.
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