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Gratuity Pay Calculator

Estimate your lump sum gratuity pay benefit based on years of continuous service and your last drawn salary.

Gratuity Pay Insights

Understanding your post-employment benefit details:

Qualifying Service

The number of complete continuous years you served at the company.

Eligible Payout

The estimated lump sum gratuity amount payable at resignation or retirement.

Tax Status

Generally exempt from income tax up to ₹20 Lakhs under Section 10(10).

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How is it calculated?

Gratuity = \frac{15 \times Last\,Drawn\,Salary \times Years\,of\,Service}{26}

Calculated according to the Payment of Gratuity Act. Last drawn salary includes Basic + Dearness Allowance (DA). 26 represents working days per month.

Worked Examples

10 Years of Service with ₹80,000 Last Drawn Salary

Gratuity = (15 * 80,000 * 10) / 26, which yields approximately ₹4,61,538. This is a tax-free payout from your employer if you complete 5+ years of continuous service.

5 Years of Service with ₹40,000 Basic Salary

Gratuity pay is calculated as (15 * 40,000 * 5) / 26, yielding ₹1,15,385.

Frequently Asked Questions

Is gratuity taxable?
For government employees, gratuity is fully tax-exempt. For private-sector employees covered under the Act, gratuity is tax-free up to a statutory limit of ₹20 Lakhs.
Is the 5-year continuous service rule mandatory?
Yes, a minimum of 5 years of continuous service with the same employer is mandatory to qualify for gratuity, except in cases of employee death or disablement.
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Results are estimates and should not be considered financial advice.

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