Gratuity Calculator
Gratuity you will receive on leaving a job, using the Payment of Gratuity formula.
Result
How to use
- 1
Enter your last drawn basic pay plus DA.
- 2
Enter your total years and months of service.
- 3
See the gratuity amount and how much is tax-free.
Questions
What is the gratuity formula?
For employers covered by the Payment of Gratuity Act: 15 × last drawn basic + DA × years of service ÷ 26. Service of more than six months in the final year counts as a full year (10 years 7 months = 11 years). For employers not covered, it is 15 ÷ 30 × average salary of the last 10 months × completed years only.
Who is eligible?
Permanent employees need at least 5 years of continuous service (no minimum on death or disablement). Under the Code on Social Security, in force from 21 November 2025, fixed-term employees qualify after 1 year.
Is gratuity taxable?
For private-sector employees, gratuity is tax-free up to a lifetime limit of ₹20 lakh; anything above is taxed at your slab rate. Gratuity received by government employees is fully tax-free.
About this Gratuity tool
Gratuity Calculator — Gratuity you will receive on leaving a job, using the Payment of Gratuity formula. It is one of 200 free tools on namasivayam.in, made by software engineer Namasivayam Vadivelan for everyday use in India.
Everything is calculated instantly in your browser: nothing you type or upload is sent to any server, there is no sign-up, and it works on mobile and desktop. Enter your last drawn basic pay plus DA.
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Results are estimates to help you plan. They are not financial, tax or medical advice.