Gratuity calculator
Estimate a benefit earned through your service.
Estimated statutory gratuity
Confirm service dates, coverage and employer policy.
For illustration only. Read the assumptions below for the full picture.
Understand your result.
Estimate statutory gratuity for the regular-employee scenario described below. Last drawn basic plus eligible DA and completed service are the main inputs.
The formula amount and the capped estimate are different. Coverage, eligibility, actual service dates and enhanced employer terms require separate checking.
A worked example.
Using this calculator’s default inputs, estimated statutory gratuity is ₹2,76,923. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Last monthly basic + DA | ₹60,000 |
|---|---|
| Completed years of service | 7 years |
| Additional completed months | 8 months |
A common mistake to avoid
Treating a part-year of exactly six months as more than six months.
Questions you might have.
Is less than five years ever eligible?
Exceptions can exist, but this model covers the standard regular-employee five-year scenario and does not assess exceptions.
Is payable gratuity the same as tax exemption?
Not necessarily. The amount payable and its tax treatment can have different conditions and limits.
Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction
How we calculate it
For a covered regular employee: gratuity = last monthly basic + DA × 15 ÷ 26 × rounded years. A part-year in excess of six months counts as a full year. Statutory payable amount is capped at ₹20 lakh in this estimate.
Assumptions & things to know
Regular employees covered under the gratuity framework with at least five years of service. Fixed-term employment, government employees, death/disability exceptions, enhanced contractual benefits and disputed eligibility are outside scope. Tax exemption can differ from the payable amount.
Income Tax Department — employee benefitsSource references checked 29 October 2026. Rates and rules may change.
Your privacy & sharing
Your financial inputs are used only within this page. Saved calculators use this browser’s local storage. Sharing creates a link with the entered values, so anyone with that link can see those values. A downloaded summary stays on your device.