Gratuity calculator
The lump sum your employer owes you for sticking around 5+ years.
Quick answer
A gratuity calculator estimates your gratuity payout after 5+ years of service: (15/26) × last drawn monthly salary (Basic + DA) × completed years. Gratuity up to ₹20 lakh is tax-free in India.
Your gratuity
For 5 years of service — tax-free up to ₹20L.
- Formula
- 15/26 × basic × years
Rates & rules checked on 15 June 2026 · based on FY 2025-26 (AY 2026-27).
What this tells you
Gratuity is a thank-you payout from your employer for long service, paid when you leave after at least 5 years. It's tax-free up to ₹20 lakh.
How it's calculated
For employees covered by the Gratuity Act: 15/26 × last drawn monthly (Basic+DA) × completed years of service. A part-year beyond 6 months counts as a full year.
Common questions
- Do I get gratuity if I leave before 5 years?
- Generally no — 5 continuous years is the threshold, with narrow exceptions for death or disability. Job-hopping every 2–3 years means you rarely collect it.
Jargon, explained
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Sources
For general education, not personalised financial advice. Verify current rates and rules before acting — tax laws and interest rates change.