Gratuity Calculator

Work out the gratuity you receive when you leave a job, and how much of it is tax free. Free, private, nothing to sign up for.

Gratuity

15 days of wages for each completed year, on a 26-day month. Regular employees qualify after 5 years, fixed-term employees after 1 year under the new labour codes. Up to ₹20 lakh is tax free over your working life.

The Gratuity Formula

Gratuity = 15 ÷ 26 × last monthly basic + DA × years of service

A final year with more than six months counts as a full year. Regular employees qualify after five years of continuous service; under the labour codes, fixed term employees qualify after one year.

Example: last basic + DA of ₹50,000 a month and 7 years 8 months of service.

That rounds to 8 years, so gratuity is about ₹2,30,769.

Up to ₹20 lakh of gratuity is tax free over your whole working life, across all employers.

Common Questions

Is gratuity paid if I resign before five years?

Usually not for regular employees, except on death or disability. Fixed term employees under the labour codes qualify after one year.

Does my CTC include gratuity?

Many companies show about 4.81% of basic as gratuity in the CTC. You receive it only when you leave after becoming eligible.

Is gratuity part of the payslip?

No, it is not paid monthly. It is a lump sum when you leave, retire, or in case of death or disability.

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