Gratuity Calculator
Enter your last drawn basic + DA and your length of service. The calculator applies the 15/26 formula, rounds service over six months up to a full year and applies the ₹20 lakh ceiling.
Quick answer
Gratuity = 15 ÷ 26 × last drawn monthly wages (basic + DA) × completed years of service, with a part year of more than six months counted as a full year. The maximum is ₹20 lakh. Under the Code on Social Security, in force from 21 November 2025, fixed-term employees qualify after one year instead of five.
How to use the Gratuity Calculator
- Enter your last drawn monthly basic + DA.
- Enter completed years and any extra months of service.
- Read the gratuity amount and how it was worked out.
Worked example
Basic + DA ₹60,000, service 7 years 8 months: counted as 8 years, gratuity = 15 ÷ 26 × 60,000 × 8 = ₹2,76,923.
Formula
Gratuity = 15 ÷ 26 × Monthly wages × Years of service (max ₹20,00,000)
Frequently asked questions
Who is eligible?
Permanent employees after 5 years of continuous service, fixed-term employees after 1 year, and in case of death or disablement at any time.
What counts as wages?
Basic pay, DA and retaining allowance. Under the Labour Codes, if allowances exceed 50% of total pay, the excess is added back to wages.
Is gratuity taxable?
For private-sector employees, gratuity up to ₹20 lakh received on retirement or leaving is exempt; government employees' gratuity is fully exempt.
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