About this gratuity calculator
Gratuity is a lump sum paid by an employer to an employee on retirement or resignation after at least five years of continuous service. It is calculated on the last drawn basic salary plus dearness allowance.
Enter your last drawn salary and years of service. The tool applies the standard formula: fifteen days' salary for each completed year of service, where a month is taken as 26 working days. The result is capped at ₹20 lakh as per current rules.
Gratuity is tax-free up to the cap for most employees. Part years of six months or more count as a full year.
Use it to estimate your retirement benefit and plan accordingly. Always confirm the latest rules with your employer or a tax professional.