Gratuity Calculator

How to use this gratuity calculator

Pick your currency, then enter your last drawn monthly salary — that means Basic pay plus Dearness Allowance (DA), not your full take-home or CTC. Set your years of continuous service with the same employer. The estimated gratuity updates instantly as you slide each value, so you can see how a longer stay or a higher final salary changes your payout.

How this is calculated

The standard gratuity formula treats one month as 26 working days and pays 15 days' wages for every completed year of service. So your per-day wage is the monthly salary divided by 26, and 15 days of that, multiplied by your years, gives the gratuity: salary × 15 × years ÷ 26. Because a month is counted as 26 days rather than 30, each day of wage is slightly higher, which is why the figure can look generous relative to a simple monthly split.

This is an educational estimate, not professional advice — eligibility and tax-free caps follow current rules and can change, so verify your own figure before relying on it. See our disclaimer.

A worked example

Suppose your last drawn salary (Basic + DA) is ₹50,000 a month and you have completed 10 years of service. Your per-day wage is 50,000 ÷ 26 = about ₹1,923. Fifteen days of that is roughly ₹28,846 — the gratuity earned for each year served. Multiply by 10 years and your estimated gratuity comes to about ₹2,88,462. Double your service to 20 years and the payout roughly doubles too, because gratuity scales directly with completed years.

Eligibility and the tax-free cap

Gratuity is generally payable once you have completed at least five years of continuous service with the same employer (with some exceptions, such as death or disablement). The portion of gratuity that is tax-free is capped — currently ₹20 lakh under the prevailing rules — and anything above that limit may be taxable depending on your situation. These thresholds and rules can change over time, so treat the cap shown here as a guide and confirm the latest figures before filing.

Tips to get an accurate estimate

• Use Basic + DA only — gratuity is based on this, not gross salary, allowances or CTC.
• Count completed years — many rules round a part-year over six months up to a full year, but enter whole years here for a clean estimate.
• Use your last drawn salary — the calculation uses your final monthly figure, not an average across your career.
• Check the cap — if your estimate exceeds the tax-free limit, the excess may be taxed.

Planning your finances around a job exit? Pair this with our income tax calculator to see how any taxable portion affects your year, or the SIP calculator to plan what to do with the lump sum.