Gratuity Calculator
29 free tools — SIP, Tax, FD, Loan, Retirement & more. No login required.
Quick Summary
- Calculate your gratuity as per the Payment of Gratuity Act using last drawn basic salary and years of service. Instant estimate, free, no login.
- For example, Basic ₹40,000, 10 years of service works out to Gratuity ≈ ₹2,30,769.
- Built for salaried employees nearing 5+ years of continuous service estimating their gratuity payout
Popular
More Tools
29 Calculators
Employment Details
Gratuity Amount
Formula: (Basic × 15 × Years) ÷ 26
✅ Gratuity up to ₹20 Lakh is fully tax-exempt for private sector employees under the Payment of Gratuity Act.
How the Gratuity Calculator Works
Under the Payment of Gratuity Act formula, the calculator multiplies 15/26 of your last drawn basic salary (plus DA) by your total years of service, giving the gratuity amount you're entitled to on leaving after 5+ years of continuous service.
Example Scenarios
| Scenario | Result |
|---|---|
| Basic ₹40,000, 10 years of service | Gratuity ≈ ₹2,30,769 |
| Basic ₹60,000, 20 years of service | Gratuity ≈ ₹6,92,308 |
| Basic ₹25,000, 5 years of service | Gratuity ≈ ₹72,115 |
* Illustrative estimates assuming constant annual returns. Actual results vary with market conditions.
Frequently Asked Questions
Under the Payment of Gratuity Act, gratuity is calculated as (15/26) × Last Drawn Basic Salary (+DA) × Number of Years of Service, for employees covered under the Act. 26 represents working days in a month and 15 represents 15 days' wages per year of service.
An employee must complete at least 5 years of continuous service with an employer to be eligible for gratuity, except in cases of death or disablement, where this minimum service requirement is waived.
For employees covered under the Payment of Gratuity Act, gratuity up to ₹20 lakh is tax-exempt. Amounts above this limit are taxable as per the employee's income tax slab.
Common Mistakes to Avoid
- Assuming eligibility before completing the minimum 5 years of continuous service.
- Using gross salary instead of only basic salary (+DA) in the gratuity formula.
- Not checking if gratuity above ₹20 lakh is being taxed correctly at your income slab.
Related Calculators
Latest From TopFund Learn
Tax Saving
Best ELSS Tax Saving Funds 2026 — Save ₹46,800 Tax Under 80C
Learn More About Investing
* Calculations assume constant annual returns. Actual mutual fund returns vary. Past performance is not indicative of future results. FD comparison uses 7% p.a. SIP returns are compounded monthly.
Discussion
User-generated content — not investment advice, and not verified or endorsed by TopFund.
No comments yet — start the discussion.