---
type: "tool"
title: "Gratuity Calculator"
description: "Free gratuity calculator — estimate your gratuity payout under the Payment of Gratuity Act, 1972, based on last drawn salary and years of service."
resource: "https://www.gstcalculators.in/gratuity-calculator.html"
language: "en"
bundle_generated: "2026-10-12"
---

# Gratuity Calculator

Free gratuity calculator — estimate your gratuity payout under the Payment of Gratuity Act, 1972, based on last drawn salary and years of service.

- Canonical page: [Gratuity Calculator](https://www.gstcalculators.in/gratuity-calculator.html)
- Publisher: [Tool Master Hub / GSTCalculators.in](../site.md)
- Category: [Investment and Savings Calculators](../categories/invest.md)

This is a discovery summary of the public page, not an independently reviewed replacement. Use the canonical page for current inputs, assumptions, formulas, source links and results. The bundle generation date does not mean that tax rules were reviewed on that date.

## Topics on the page



## Questions and answers from the visible page

### 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.

## Accuracy and corrections

[Methodology](https://www.gstcalculators.in/methodology.html) · [Editorial policy](https://www.gstcalculators.in/editorial-policy.html) · [Disclaimer](https://www.gstcalculators.in/disclaimer.html) · [Report a problem](https://www.gstcalculators.in/contact.html).