Gratuity Calculator
Gratuity Calculator India
Calculate your estimated gratuity amount based on basic salary, DA and total years of service.
Maximum Limit: ₹20,00,000
Gratuity Calculator Guide
Gratuity is an important financial benefit paid by an employer to an employee as a reward for long-term service. This gratuity calculator helps you estimate your final payout using your basic salary, dearness allowance and service period.
What Is Gratuity?
Gratuity is a lump sum payment made by an employer to an employee after the employee completes a certain period of continuous service.
The longer you work for an organization and the higher your last drawn Basic Salary plus DA, the higher your gratuity amount may be.
How Is Gratuity Calculated?
The common gratuity formula is: (Last Drawn Salary × 15 × Years of Service) ÷ 26.
Last drawn salary usually means Basic Salary plus Dearness Allowance.
Who Is Eligible for Gratuity?
In most cases, an employee becomes eligible for gratuity after completing at least 5 years of continuous service with the same employer.
Important Things to Know
Gratuity is generally calculated on Basic Salary and DA, not on full CTC.
This calculator uses ₹20,00,000 as the maximum gratuity cap.
Detailed Explanation of Gratuity in India
Gratuity is an important part of an employee’s long-term financial benefits. It is useful for people who stay with one organization for several years.
This calculator allows you to enter your monthly Basic Salary plus DA, years of service and additional months to estimate your gratuity instantly.
Frequently Asked Questions
1. Does every employee receive gratuity?
No. Gratuity is generally paid to employees who meet the required continuous service condition.
2. Is gratuity calculated on total salary?
No. Gratuity is generally calculated on Basic Salary plus Dearness Allowance.
3. Are additional months counted in gratuity?
Additional months can be included proportionately for estimate-based calculations.
4. Is gratuity taxable?
Gratuity may be fully or partly tax-exempt depending on employee category and tax rules.
5. Does this calculator show the exact final amount?
This calculator provides an estimate. Actual gratuity may differ based on company records and policy.
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