Retirement & Planning

Gratuity Calculator

Calculate gratuity eligibility and payout based on salary, service years, and employee type.

About the gratuity calculator

Gratuity is a statutory retirement benefit paid by an employer when an eligible employee leaves after completing the required period of service. In India, it is usually based on monthly Basic salary plus Dearness Allowance, completed service years, and the employee category.

Use this calculator when you are evaluating a job change, planning retirement, or checking whether your expected settlement broadly matches the Payment of Gratuity Act method. It supports private sector and government employee assumptions because the divisor and cap differ.

The result is a planning estimate. Actual payouts can vary by service rules, wage definition, continuous service treatment, and tax exemption limits, so reconcile the final number with your employer's calculation before making a decision.

How do I use the gratuity calculator?

  1. Enter monthly Basic plus DA: Use the monthly Basic salary plus Dearness Allowance amount, not your full CTC or take-home pay. Gratuity is generally computed on this salary base.
  2. Add years of service: Enter your continuous service with the same employer. Private sector service is rounded to the nearest completed year when the fraction is six months or more.
  3. Choose employee type: Select Private or Government. The calculator uses a 26-day divisor and ₹20,00,000 cap for private employees, and a 30-day divisor and ₹25,00,000 cap for government employees.
  4. Check eligibility: The calculator shows zero payable gratuity before the standard five-year eligibility threshold, while still showing the formula basis for context.
  5. Review the cap and projection: Compare the estimated payout with the applicable cap and use the year-by-year chart to see how service tenure changes the benefit.

How is gratuity calculated in India?

Gratuity = (Monthly Basic + DA) × 15 × Rounded service years ÷ Divisor

The calculator then applies the relevant cap: ₹20,00,000 for private employees and ₹25,00,000 for government employees. Standard eligibility is five years of continuous service, subject to statutory exceptions such as death or disability.