Gratuity Calculator

Gratuity = Last Drawn Salary × 15 × Years of Service ÷ 26 — the standard formula under the Payment of Gratuity Act, where 26 represents the assumed working days in a month and 15 represents half a month's wage per year of service.

Typically basic salary plus dearness allowance, not your full CTC — enter that figure rather than your gross monthly pay for an accurate estimate.

Yes, gratuity is generally payable only after completing a minimum continuous service period with the employer, with some exceptions such as death or disability.

Gratuity received by government employees is fully tax-exempt; for others, it's exempt up to specified limits under the Act, with amounts above that taxed as income — check current exemption limits for your case.

No, this calculator applies the formula directly to your inputs. Statutory gratuity payouts are subject to a maximum ceiling set under the Act, which may cap the amount below the formula result for high salaries or long service.