Gratuity Calculator
Gratuity = (basic + DA) × 15/26 × years of service.
Payable after 5 years of service. Six months or more in the final year counts as a full year. Tax-free up to ₹20 lakh (approx rules).
How it works
Gratuity equals 15 days of salary for every completed year of service, calculated as monthly basic plus DA, multiplied by 15/26, multiplied by years of service. It is payable after 5 years with the same employer.
Example
With ₹50,000/month basic and 5 years of service, gratuity is about ₹1,44,200.
FAQs
When am I eligible for gratuity?
After 5 years of continuous service with the same employer. Six months or more in your final year counts as a full year.
Is gratuity taxable?
For most private employees it is tax-free up to ₹20 lakh. Government employees get full exemption.
Does it include bonus and allowances?
No — only basic salary plus dearness allowance (DA) count for the calculation.