Professional Gratuity Calculator

Calculate your end-of-service benefits based on years of service and last drawn salary

Professional Gratuity Calculator

Employee Details

Last drawn basic salary + dearness allowance
Total years of service (e.g. 15 years 6 months = 15.5)
Select your employment location

Note: Gratuity calculation varies by country. This calculator uses the standard formula:

Gratuity = (Basic + DA) × (15/26) × Years of Service

For UAE and GCC countries, different calculation methods may apply.

Calculation Results

Total Gratuity Amount
₹ 4,47,115
This is the estimated end-of-service benefit you’re entitled to receive based on your inputs.
Salary Component
₹ 50,000
Last drawn basic salary + dearness allowance
Service Years
15.5 Years
Total service period (rounded to nearest year)
Calculation Factor
15/26
Standard gratuity calculation factor
Annual Breakdown

Gratuity Analysis

Based on your last drawn salary of ₹50,000 and 15.5 years of service, you are entitled to a gratuity payment of ₹4,47,115. This amount is calculated using the standard formula for employees covered under the Payment of Gratuity Act.

Key Insights:

• Each year of service adds approximately ₹28,846 to your gratuity amount

• Your gratuity represents about 7.5 months of your last salary

• After 5 years of service, you become eligible for gratuity benefits

Salary vs Gratuity Amount
Gratuity by Service Years
Gratuity Growth Projection

This Gratuity Calculator helps estimate your end-of-service benefits based on standard calculation methods.

How to Calculate Gratuity in 2025?

Are you wondering how much gratuity you’ll receive after years of hard work? Our free online Gratuity Calculator helps you estimate your payout in seconds! Whether you’re in the private sector or government job, understanding your gratuity entitlement is crucial for financial planning.

Gratuity Calculation Formula

Under the Payment of Gratuity Act, 1972, gratuity is calculated as:

Gratuity = (Last Drawn Salary × Years of Service × 15) / 26

  • Last Drawn Salary = Basic Salary + Dearness Allowance (DA)
  • Years of Service = Rounded to the nearest full year (e.g., 5 years 7 months = 6 years).

Example: If your basic salary + DA = ₹50,000 and you served for 7 years, your gratuity would be:
(50,000 × 7 × 15) / 26 = ₹2,01,923

Who is Eligible for Gratuity?

  • Employees with 5+ years of continuous service (mandatory for companies with 10+ employees).
  • Government employees enjoy full tax exemption, while private employees get tax-free gratuity up to ₹20 lakhs.

How to Use Our Free Gratuity Calculator?

  1. Enter your last drawn basic salary + DA.
  2. Input your total years of service.
  3. Click “Calculate” to see your estimated gratuity amount!

FAQs for Gratuity Calculator

  • How is gratuity calculated?

    Gratuity = (Last Drawn Salary × Years of Service × 15) / 26. For example, if your basic salary + DA is ₹50,000 and you served for 5 years, gratuity = (50,000 × 5 × 15)/26 = ₹1,44,230.

  • Who is eligible for gratuity?

    Employees with 5+ years of continuous service in an organization (under the Gratuity Act). Some companies may offer it earlier.

  • Is gratuity taxable in India?

    Gratuity is tax-free up to ₹20 lakhs for private employees. Government employees enjoy full exemption.

  • Can I use this calculator for part-time work?

    No, gratuity applies only to full-time employees with 5+ years of service.

  • What if my company doesn’t pay gratuity?

    If covered under the Gratuity Act, you can legally claim it. Consult a labor lawyer if denied.

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