TooldenTOOLDENFINANCEON-DEVICE
Gratuity Calculator India: Private and Government Formula
Calculate gratuity on your last drawn salary and years of service, with both the covered (÷ 26) and non-covered (÷ 30) formulas. All processing happens in your browser.
HOW TO USE
- 1Enter your last drawn monthly salary (basic pay plus dearness allowance).
- 2Enter your completed years of continuous service with the employer.
- 3Pick whether your employer is covered under the Payment of Gratuity Act, 1972 (10+ employees usually are). The result updates live.
- 4Read off the gratuity payable and copy the breakdown.
EXAMPLE
INPUT
Monthly basic + DA: ₹50,000 · Service: 8 years · Covered: yes
OUTPUT
Gratuity ₹2,30,769 = 15 x 50,000 x 8 / 26
FAQ
What is the gratuity calculation formula?
Gratuity = 15 x last drawn monthly salary x years of service / 26 for employers covered under the Gratuity Act (10+ employees), or / 30 for employers not covered. Salary means basic pay plus dearness allowance only.
Who is eligible for gratuity?
Employees with 5 or more years of continuous service with one employer, on resignation, retirement, superannuation, or termination. In case of death or disability, gratuity is payable even before 5 years.
Is gratuity tax-free in India?
Gratuity is exempt from income tax up to the statutory limit (₹20 lakh for most private-sector employees; government employees have a higher limit). Amounts above the limit are taxable. Limits change, so check the current rules.
Does the salary include HRA and other allowances?
No. Only basic pay plus dearness allowance count. HRA, conveyance, bonuses and other allowances are excluded from the gratuity calculation.