Gratuity Calculator
Calculate the gratuity payable when you leave a job. Enter your last drawn basic salary and years of service to see your gratuity and its tax-free portion.
Gratuity is calculated only on basic salary plus dearness allowance, not on the full CTC.
You become eligible for gratuity after completing 5 years of continuous service.
Gratuity Amount
₹2.88 L
Tax-Free Portion
₹2.88 L
Up to Rs 20 lakh exempt
Taxable Portion
₹0
Formula
Gratuity = Last drawn salary x 15 / 26 x Years of service. The 15/26 factor represents 15 days of salary for each completed year, based on a 26-day working month.
For private sector employees, gratuity up to Rs 20 lakh is tax-free; the excess is taxable. The Rs 20 lakh limit is a lifetime ceiling across all employers. Service of more than 6 months in the final year is rounded up to a full year.