Gratuity Calculator – Estimate Your Gratuity Payout on Retirement or Resignation

This Gratuity Calculator estimates the gratuity amount payable to you on retirement, resignation, or completion of a qualifying period of service. Enter your last drawn monthly salary and total years of continuous service to instantly calculate your gratuity payout. Use it to plan your exit finances or understand what you are entitled to before leaving an organisation.

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Gratuity Calculator

Last Drawn Basic + DA (₹)
Years of Service: 8 Years
Min: 5 Yrs for resignation eligibilityMax: 40 Yrs
Gratuity Act Coverage
Total Gratuity₹2,76,923
Total Gratuity Payable₹2,76,923
Tax-Free Amount₹2,76,923
Taxable Portion₹0
Statutory tax-exemption limit: ₹20,00,000 for private sector employees.
1₹

What is a Gratuity Calculator?

A Gratuity Calculator is an online tool that estimates the gratuity amount payable to an employee upon retirement, resignation, or completion of a qualifying period of service. Enter your last drawn monthly salary and total years of continuous service to instantly calculate your gratuity payout, helping you plan your finances before leaving an organisation.

How to Use Gratuity Calculator – 3 Step Flow

Streamline your finances with an easy, automated process — calculate, plan, and achieve your financial goals.

1STEP

Enter your last drawn salary

Input your last drawn monthly basic salary plus Dearness Allowance (DA). The Payment of Gratuity Act uses basic + DA for the gratuity calculation, not the gross salary or total CTC. If your employer does not provide a separate DA component, use only the basic salary figure for the calculation.

2STEP

Enter your years of service

Input your total years of continuous service with the employer. Gratuity requires a minimum of 5 years of continuous service to become payable on resignation or retirement. In the case of death or permanent disability, gratuity is payable regardless of the number of years completed.

3STEP

Review your estimated payout

The calculator shows the gratuity amount payable based on the applicable formula. The result is an estimate, the actual amount may differ slightly based on how the employer rounds the completed service period (months exceeding 6 are typically rounded up to a full year).

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Frequently Asked Questions

A Gratuity Calculator estimates the gratuity amount payable on retirement or resignation based on your last drawn basic salary and years of continuous service. It applies the standard formula under the Payment of Gratuity Act, or the alternate formula for non-covered employees, and shows your estimated payout instantly.

A minimum of 5 years of continuous service is required for gratuity to become payable on resignation or retirement. In cases of death or permanent disability during service, gratuity is payable regardless of years completed, even if the employee served for less than a year.

For private sector employees, gratuity is tax-free up to ₹20 lakh under Section 10(10) of the Income Tax Act. Any amount above this ceiling is taxable as salary income. For government employees, gratuity is fully exempt from tax without any limit. The ₹20 lakh ceiling applies to the total gratuity received across all employers over a lifetime.

The gratuity formula uses the last drawn basic salary plus Dearness Allowance (DA). Other components such as HRA, travel allowance, overtime, or performance bonuses are not included. If your employer does not provide DA, only the basic salary figure is used in the calculation.

Gratuity is still payable if the company closes or the employee is retrenched, subject to the minimum service requirement. Gratuity can be forfeited, fully or partially, if the employee is dismissed for misconduct causing financial loss or damage to the employer's property. Voluntary resignation after 5 years entitles the employee to the full gratuity amount.

Yes. If you have worked with multiple employers and completed 5 or more years of service with each, you are entitled to gratuity from each employer separately. The ₹20 lakh lifetime tax exemption under Section 10(10) applies to the total gratuity received across all employers in a lifetime, not per employer.