Gratuity Calculator

Calculate your gratuity amount as per Indian labor laws

Covered Establishments

Under Payment of Gratuity Act, 1972 (10+ employees)

  • • Minimum 5 years of service required
  • • 15 days salary × eligible years of service
  • • Round up if more than 6 months in a year
  • • Maximum limit: ₹20 lakhs
  • • Formula: (Basic + DA) × 15 × Years ÷ 26

Non-Covered Establishments

Not under Payment of Gratuity Act (< 10 employees)

  • • Minimum 5 years of service required
  • • 15 days salary × exact years of service
  • • No maximum limit
  • • Based on company policy
  • • Formula: (Basic + DA) × 15 × Years ÷ 30

Important Notes

  • • Gratuity is calculated on Basic Salary + Dearness Allowance
  • • Service period includes both years and months
  • • For covered establishments, maximum gratuity is ₹20 lakhs
  • • Gratuity is tax-free up to ₹20 lakhs
  • • This calculator provides estimates; actual amounts may vary

How to use:

  • Enter your basic salary and dearness allowance
  • Enter your total years and months of service
  • The calculator will show your eligibility and gratuity amount for both covered and non-covered establishments