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The results show estimated values based on your inputs. Check the values and adjust inputs if you need different scenarios.
Gratuity Calculator – Calculate Gratuity Amount
About this calculator
Use the Gratuity Calculator – Calculate Gratuity Amount to quickly estimate results. Enter the inputs and review the calculated output below. This tool is for guidance and educational purposes only.
More about this tool
What is Gratuity?
Gratuity is a one-time payment made by employers to employees upon retirement or resignation after completing 5 years of service. It's a form of appreciation for the employee's years of service and contribution to the organization. Gratuity is protected under the Payment of Gratuity Act, 1972.
Gratuity Calculation Method
Gratuity = (Basic Salary + Dearness Allowance) × Last Month / 26 × Years of Service. Last Month refers to the last drawn salary or average of last 10 months salary, whichever is higher. For employees covered under the Payment of Gratuity Act, maximum gratuity is Rs. 20 lakh. Gratuity is fully tax-exempt under certain conditions.
Using Gratuity Calculator
Enter your basic salary, dearness allowance, years of completed service, and separation date. The calculator shows your gratuity amount based on the legal formula. Helps you understand retirement benefits and plan post-retirement finances.
Frequently asked questions
Gratuity Calculator – Calculate Gratuity Amount - How accurate are the results?
Results are calculated using standard formulas for estimation. For financial decisions consult with a certified advisor.
How to use Gratuity Calculator – Calculate Gratuity Amount?
Enter the known values into the calculator fields and press calculate to see instant results. Adjust values to explore scenarios.