Gratuity Calculator

Gratuity follows one specific formula, with a ₹20 lakh tax-free ceiling. See exactly what you're owed before you resign.

Gratuity calculator

Last drawn Basic + DA (monthly)₹50,000

Years of service7 yrs

Gratuity payable

₹0

fully tax-exempt (under ₹20L ceiling).

Formula: (Basic+DA) × 15/26 × years₹0
Statutory exemption ceiling₹20,00,000
Taxable portion₹0

Eligible after 5+ years of continuous service (private sector). Not eligible below 5 years, except in case of death or disability.

How this works

Gratuity is calculated as (Basic + DA) × 15/26 × years of service, for anyone with 5 or more years of continuous service. It's tax-exempt up to ₹20 lakh — the lowest of the actual gratuity, this ceiling, or the formula amount.

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