Calculator
Gratuity calculator
Five years of service earns a parting gift. Price yours.
Formula: 15 days' salary per year (a month = 26 days). A 6+ month fraction counts as a full year — 10 counted here.
10 years counted · tax-free to ₹25L
- Gratuity payable₹4,61,538
- Tax-exempt (to ₹25L)₹4,61,538
- Taxable above cap₹0
Hover a segment for value + share.
Payable after 5 years' continuous service (waived on death/disablement; 4y10m often qualifies). Income-tax exemption up to ₹25L; the Gratuity Act employer ceiling is ₹20L — confirm with HR for the taxable split.
What this calculator answers
A last drawn monthly salary of ₹80,000 with 10 years of service gives a gratuity of about ₹4,61,538 under the 15/26 formula. The ₹25,00,000 exemption and the five-year eligibility rule are shown alongside the result.
How it is calculated
Gratuity = last monthly salary × 15 ÷ 26 × counted years of service, where a part-year above six months rounds up to a full year and no gratuity is payable below five years of continuous service.
Uses the 15/26 formula with 26 working days treated as a month, as it applies to employees covered by the Payment of Gratuity Act. Up to ₹25,00,000 is exempt and the rest is taxable.
Common questions
Why is the multiplier 15/26?
The Act pays 15 days' salary for each completed year of service and treats a month as 26 working days, which is where the 15 ÷ 26 factor comes from.
How are part-years counted?
A part-year above six months rounds up to a full year and anything shorter is ignored, so 10 years 7 months counts as 11 while 10 years 5 months counts as 10.
What happens if I leave before five years?
No gratuity is payable below five years of continuous service, so the calculator returns zero and flags the ineligibility.
Is the gratuity payout taxed?
Up to ₹25,00,000 is exempt for employees covered by the Act, and that limit is shown alongside the calculated payout.
Source & freshness
- Source
- Deterministic formula in lib/calculators.ts
- Timeliness
- Static-verified
- Method
- calculated
- Note
- Illustrative projection from your inputs — not a market quote.