Estimate the gratuity amount you are eligible to receive after 5 years of continuous service. Based on the Payment of Gratuity Act.
Calculate your gratuity benefit amount.
The Gratuity Calculator helps employees estimate the lump sum amount they receive upon leaving a job after at least 5 years of service. It is a statutory benefit provided by employers to express gratitude for long-term service.
Gratuity is a significant component of retirement benefits. Under the Payment of Gratuity Act, employers must pay this benefit to employees who complete 5+ years of continuous service. The amount increases with tenure, rewarding loyalty and long service.
Salary = Basic + DA. The 15/26 represents 15 days' wages per year, with 26 working days per month.
Last salary ₹50,000, 10 years of service: Gratuity = (15 × ₹50,000 × 10) ÷ 26 = ₹2,88,462. That's a substantial retirement bonus!
| Years | ₹50K Salary | ₹1L Salary |
|---|---|---|
| 5 years | ₹1.44 lakh | ₹2.88 lakh |
| 10 years | ₹2.88 lakh | ₹5.77 lakh |
| 20 years | ₹5.77 lakh | ₹11.54 lakh |
| 30 years | ₹8.65 lakh | ₹17.31 lakh |
Related tools: EPF Calculator for retirement corpus, Retirement Calculator for complete planning, and Income Tax Calculator for tax implications.
Gratuity = (15 × Last Basic Salary × Years of Service) ÷ 26. This gives 15 days' wages per year worked. Maximum tax-free gratuity is capped at ₹20 lakh.
Minimum 5 years of continuous service required. Exception: In case of death or disability, no minimum tenure is needed. Fractions over 6 months count as full year.
Gratuity up to ₹20 lakh is tax-exempt. Amount exceeding ₹20 lakh is taxable as salary income. Government employees have no upper limit for tax exemption.