Gratuity Calculator
Updated July 2026
Estimate the gratuity payable on retirement or resignation, based on your last drawn Basic + DA and years of service, under the Payment of Gratuity Act, 1972.
Gratuity Calculator
Frequently Asked Questions
What is the gratuity calculation formula?
For employees covered under the Payment of Gratuity Act: Gratuity = (15 × Last Drawn Salary × Years of Service) / 26. For employees not covered, the divisor used is 30 instead of 26.
What is the minimum service required for gratuity?
Generally 5 years of continuous service, except in cases of death or disability, where the minimum service requirement is waived.
Is there a maximum gratuity limit?
Yes. The statutory cap is currently ₹20,00,000. Any amount paid above this cap by an employer (as an ex-gratia payment) does not enjoy the same tax exemption.
Is gratuity taxable?
Gratuity received by government employees is fully tax-exempt. For private-sector employees, it is exempt up to the least of: the statutory cap, the amount calculated by the formula, or the actual gratuity received.