How to use the Gratuity Calculator
- Enter your last monthly basic salary plus dearness allowance.
- Enter your years and months of service.
- Choose whether your employer is covered and press Calculate gratuity.
Gratuity Calculator formula
Covered: Gratuity = 15 × Salary × Years ÷ 26 (service of 6 months or more in the last year is rounded up)
Not covered: Gratuity = 15 × Salary × Years ÷ 30 (only completed years)
Worked example
Last basic + DA ₹50,000, service 10 years 7 months (rounded to 11 years): 15 × 50,000 × 11 ÷ 26 ≈ ₹3,17,308.
Frequently asked questions
Who is eligible for gratuity?
Employees with at least 5 years of continuous service with the same employer. The 5-year condition does not apply in case of death or disability.
What does 15/26 mean in the gratuity formula?
15 days' wages for each year of service, where a month is taken as 26 working days.
How are months of service counted?
If the employer is covered by the Act, service of more than 6 months in the last year is counted as a full year.
Is gratuity taxable?
For government employees it is fully tax-free. For others covered by the Act, it is tax-free up to ₹20 lakh (the least of actual gratuity, formula amount and ₹20 lakh).
Which salary is used for gratuity?
The last drawn basic salary plus dearness allowance. HRA, bonus and other allowances are not included.