Gratuity Calculator
Last Updated: 8 April 2026
Gratuity Calculator (2025)
Calculate the gratuity amount you are entitled to after years of service
Note: 5.6 years will be rounded to 6 years for calculation.
Frequently Asked Questions
Common queries answered for you
Usually, yes. An employee is eligible for gratuity only after completing 5 years of continuous service. However, in case of death or disablement, this 5-year condition is waived.
For gratuity, salary includes 'Basic Salary' and 'Dearness Allowance (DA)'. Other allowances like HRA, Bonus, or incentives are generally excluded.
For private sector employees, gratuity up to ₹25 Lakhs is exempt from income tax. For government employees, the entire gratuity amount is tax-free.
What is Understanding Gratuity: Your Reward for Loyalty?
Gratuity is a monetary benefit given by an employer to an employee in recognition of their long and meritorious service. It is governed by the Payment of Gratuity Act, 1972 in India.
📊 Practical Example
"If you have worked for 10 years and your last basic + DA was ₹1,00,000, your gratuity would be (15/26) * 1,00,000 * 10 = ₹5,76,923."
⚠️ Common Mistake
Ignoring the rounding rules. Service for 4 years and 7 months is rounded to 5 years. Service for 4 years and 5 months is rounded to 4 years. This small difference can significantly impact your final amount.
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