Online Gratuity Calculator
Calculate how much gratuity you are entitled to receive from your employer after 5 years of service.
Basic Salary (Monthly)
₹
Dearness Allowance (DA)
₹
Years of Service
Yrs
Estimated Gratuity Amount
₹ 1,44,231
Tax Status:
Tax Free
What is Gratuity?
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for their long-term service to the company. It is governed by the Payment of Gratuity Act, 1972 in India.
Eligibility for Gratuity
To be eligible to receive gratuity, an employee must have completed at least 5 continuous years of service with the same employer. It is payable on:
- Resignation or retirement
- Superannuation
- Death or disablement (the 5-year rule is relaxed in these cases)
The Formula
The standard formula for calculating gratuity is:
Gratuity = (15 × Last Drawn Salary × Years of Service) / 26
Note: The Last Drawn Salary includes your Basic Salary + Dearness Allowance (DA). Also, any service over 6 months is rounded up to the next year.