Your details
About the Gratuity Calculator
Gratuity is a statutory reward for continuous service, payable when you leave after five or more years. Under the Payment of Gratuity Act the formula is fifteen days of last drawn pay for every completed year, and the Act treats a month as 26 working days — which is where the 15/26 in the formula comes from.
The five-year condition is strict, with one exception: it is waived if service ends because of death or disablement. And "completed years" rounds up when the final part-year exceeds six months.
The formula
The statutory ceiling for tax exemption is ₹20 lakh.
Things worth knowing
Frequently asked questions
For employers covered by the Act: (15 ÷ 26) × last drawn monthly basic and DA × completed years of service. A part-year over six months counts as a full year.
Yes, except where employment ends due to death or disablement. Some court rulings have treated 4 years and 240 days as five years, but employers do not apply this uniformly.
For non-government employees, up to ₹20 lakh is exempt across your whole career. Amounts beyond that are taxed as salary income. Government employees receive it fully exempt.
Explore every calculator
55 free tools across loans, tax and investments — all with the full working shown.