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Gratuity Calculator
Calculate statutory gratuity under the Payment of Gratuity Act.
Last updated 2026-09-17
Estimated gratuity
₹5,53,846
Capped at ₹20 lakh under the Act.
How it works
Gratuity = (Last drawn salary × 15 × completed years) / 26, capped at ₹20 lakh. Years are rounded up if you have completed 6+ months.
How to use this calculator
- Enter the inputs shown above (amount, rate, tenure, income, or other fields).
- Read the live results — they update as you type.
- Check the formula, worked example, and assumptions on this page before you decide.
Formula
Gratuity = (Last drawn salary × 15 × completed years) / 26, capped at ₹20 lakh. Years are rounded up if you have completed 6+ months.
Worked example
Last drawn salary (basic + DA) of ₹80,000 after 12 years ≈ ₹5.54 lakh.
Reading the result
Treat the output as a planning figure. Compare it with your sanction letter, payslip, or GST invoice rather than treating it as a filing or a loan offer.
Read the full guideSee also: calculation methodology and disclaimer.
Frequently asked questions
Employees covered by the Act generally need 5 years of continuous service, except in case of death or disablement.
Assumptions and limits
- This is a planning estimate. Your lender, employer, or tax officer may use different inputs or rounding.
Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.