Gratuity Calculator Online
Calculate your expected gratuity amount upon retirement or resignation.
Gratuity Calculator Online (Payment of Gratuity Act)
Use this gratuity calculator to estimate what your employer owes under the Payment of Gratuity Act, 1972. Employers pay it on resignation, retirement, or death after minimum service norms are met. Enter last drawn basic plus DA and completed years of service.
How to use this calculator
Enter last drawn basic salary and dearness allowance. HRA, bonuses, and special allowances usually stay out unless your company policy explicitly includes them.
Enter completed years of service. Partial years matter: service beyond six months in a year is often counted as a full year under the Act. If you left at four years and eight months, check whether your employer treats that as five years eligible.
The output is the statutory minimum. Internal policies may pay more but not less. Use the figure when negotiating full and final settlement or planning how much of your exit payout stays tax-free within the ₹20 lakh lifetime exemption for non-government employees.
If your employer is not covered under the Act but offers gratuity voluntarily, the formula may differ. Confirm coverage on your appointment letter before relying on this estimate for a job switch decision.
Gratuity formula under the Act
Gratuity = (15 × Last drawn basic + DA × Years of service) / 26 The divisor 26 reflects 26 working days in a month under the Act. Example: ₹40,000 basic + DA, 8 years of service. Gratuity ≈ (15 × 40,000 × 8) / 26 ≈ ₹1,84,615. Employers covered by the Act must pay within 30 days of eligibility. Delay attracts simple interest at 10% per annum.
Frequently Asked Questions
When am I eligible for gratuity?
After five years of continuous service with the same employer on resignation, retirement, or termination, subject to Act coverage.
Is gratuity taxable?
Tax-exempt up to ₹20 lakh lifetime for non-government employees covered under the Payment of Gratuity Act.
Resignation at 4 years 8 months?
Courts have held that 4 years 240 days in the fifth year can count as five years, but employer interpretation varies. Confirm with HR.
Gratuity if company shuts down?
Gratuity is a preferential statutory due. File claims with the liquidator or regional labour commissioner if payment is delayed.
Payment timeline?
Due within 30 days of application once eligible. Delay beyond that attracts 10% simple interest under the Act.
Gratuity for contract staff?
Only employees covered under the Act qualify. Pure contract workers through agencies may not receive statutory gratuity unless the arrangement is deemed employment.
How to apply?
Submit Form I to the employer within 30 days of becoming eligible. Keep salary slips showing basic and DA for the last 12 months.
Gratuity for death in service?
Nominees receive gratuity even if five years of service are not completed, subject to Act coverage and employer policy.
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