Tax, Salary & Business

Gratuity Calculator

Gratuity: it uses the Payment of Gratuity Act formula: last drawn salary × 15/26 × years of service. Worked through below with real figures, and the calculator repeats the working on your own inputs — free, on-device, instant.

Gratuity Calculator is a browser-based way to estimate your gratuity. Feed it your last drawn basic + DA and years of service and it computes the gratuity amount on the spot, keeping your data local.

How service is counted. This calculator uses the completed-year rule: completed years, plus one more year only if the leftover part exceeds six months (exactly six months does not round up). Formula: basic + DA × 15 × counted years ÷ 26. Estimate only — verify against the Payment of Gratuity Act for your situation.
Enter your values and tap Calculate.

Estimate only — not legal or tax advice. Gratuity depends on your last drawn salary, completed years of service and the statutory formula, which can change.

About this calculator

It uses the Payment of Gratuity Act formula: last drawn salary × 15/26 × years of service. It matters whenever pay, prices or filings depend on getting the arithmetic right before the paperwork does. Worked below as Gratuity = last drawn salary × 15/26 × years of service. For ₹50,000 salary and 10 years: 50,000 × 15/26 × 10 = ₹288,461.54 . — and the calculator on this page repeats exactly that working for your inputs, instantly, and offline after load.

How to use

  1. Enter your last drawn monthly basic plus dearness allowance.
  2. Enter your completed years of continuous service, plus any additional months (0 to 11).
  3. Enter completed years and any additional months (0 to 11) in the two fields for exact six-month-boundary rounding.
  4. Tap Calculate to see the estimated gratuity amount.

Why use the Gratuity Calculator

Instant

Every figure is computed on your device the moment you tap Calculate.

Private

Your numbers stay in your browser; nothing is sent to a server or saved.

Free

No signup, no paywall, and no ads placed inside your results.

Works offline

Once the page has loaded it keeps working even on a weak connection.

Mobile-first

Laid out for phones and tablets just as much as for desktops.

Honest estimates

Uses simplified, standard formulas for educational estimates; real-world figures vary with local rules, fees, and current rates.

Common uses

Use it when checking last-drawn-salary impact

Use it for a statutory-formula estimate

Use it when reviewing employment benefits

Use it when nearing a service milestone

Use it for a quick gratuity estimate

Use it for end-of-service settlement

Technical notes

Gratuity Calculator uses the Payment of Gratuity Act formula: last drawn salary × 15/26 × years of service.

Exemptions and statutory amounts depend on your exact salary structure and current rules, so confirm with your employer or a tax professional.

Results are rounded for display; the underlying calculation keeps full precision.

Worked example

Gratuity = last drawn salary × 15/26 × years of service. For ₹50,000 salary and 10 years: 50,000 × 15/26 × 10 = ₹288,461.54.

FAQ

What formula does this gratuity calculator use?

It uses last-drawn basic plus DA, multiplied by 15, multiplied by years of service, divided by 26, the widely used Payment of Gratuity Act formula.

Does the Gratuity Calculator send my data to a server?

No. The Gratuity Calculator runs entirely in your browser with JavaScript; the values you enter never leave your device and nothing is uploaded or saved.

Is five years of service required?

Generally yes. The tool flags service under five years, since gratuity under the Act usually needs at least five continuous years.

Is gratuity taxable?

A statutory cap on tax-exempt gratuity applies over a career; amounts above it can be taxable. Confirm the current cap and your eligibility before relying on the figure.