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. Gratuity is payable only after five completed years. For the payout, a part-year counts as a full year only when it exceeds six months; exactly six months does not round up. 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. Suppose a private sector employee has monthly Basic plus DA of ₹50,000 and 10 years of eligible service. The employee is eligible because service is at least five years. The formula amount of ₹2,88,462 is below the ₹20,00,000 private sector cap, so the capped and uncapped amounts are the same.

When am I eligible to receive gratuity?

Gratuity is typically payable after 5 years of continuous service with the same employer. Certain exceptions (such as death or disability) can allow payment even before 5 years.

Is there a maximum limit on gratuity?

The cap depends on employment category. This calculator applies ₹20,00,000 for private employees and ₹25,00,000 for government employees. If your formula-based amount exceeds the applicable cap, payout is restricted to that cap.

Does the calculator include allowances other than Basic + DA?

No. This calculator uses only monthly Basic salary plus Dearness Allowance (DA), which is the standard base for gratuity computation.

Tax treatment depends on your employment category and exemption limits under the Income Tax Act. Government employees generally get full exemption, while private employees can claim exemption up to prescribed limits.

Tools/

Gratuity Calculator

Estimate your gratuity amount based on monthly Basic + DA, years of service, and employee type.

Monthly Basic Salary + DA

₹5,000₹5,00,000

Years of Service

1 Yr50 Yrs

Employee Type

Estimated Gratuity Amount

₹2.9 L

using Private formula at 10 years

Monthly Salary

₹50,000

Per-Year Gratuity

₹28,846

Years of Service

10 years

Gratuity Growth by Years of Service

Year-by-Year Breakdown

Years	Gratuity	Status
5 years	₹1,44,231
10 years	₹2,88,462	Current
15 years	₹4,32,692
20 years	₹5,76,923
25 years	₹7,21,154
30 years	₹8,65,385

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.

Frequently Asked Questions

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.
Add years of service
Enter your continuous service with the same employer. Gratuity is payable only after five completed years. For the payout, a part-year counts as a full year only when it exceeds six months; exactly six months does not round up.
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.
Check eligibility
The calculator shows zero payable gratuity before the standard five-year eligibility threshold, while still showing the formula basis for context.
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.

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

Monthly Basic + DA is the eligible monthly salary base
15 represents 15 days of wages for each completed service year
Rounded service years are based on the employee type rules used by the calculator
Divisor is 26 for private employees and 30 for government employees

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.

Worked example

Suppose a private sector employee has monthly Basic plus DA of ₹50,000 and 10 years of eligible service.

Monthly Basic + DA: ₹50,000
Years of service: 10
Divisor: 26
Per-year gratuity: ₹28,846
Uncapped gratuity: ₹2,88,462
Estimated gratuity amount: ₹2,88,462

The employee is eligible because service is at least five years. The formula amount of ₹2,88,462 is below the ₹20,00,000 private sector cap, so the capped and uncapped amounts are the same.

Last reviewed 3 Sep 2026 · Sources: Payment of Gratuity Act, 1972 (Chief Labour Commissioner), Income-tax Act, 2025 (Income Tax Department)

Gratuity usually uses Basic plus DA, not gross salary, CTC, bonus, HRA, or reimbursements.
Private sector employees are generally eligible after five years of continuous service, with statutory exceptions for death or disability.
Tax treatment differs by employee category. Government gratuity is generally fully exempt, while private sector exemption is subject to prescribed limits and conditions.
Employer policies, covered establishment status, and service continuity can affect the final settlement, so treat this as a check against the payroll calculation.

Plan the payout, then track where it goes

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Gratuity Calculator

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Gratuity Growth by Years of Service

About the gratuity calculator

Frequently Asked Questions

Plan the payout, then track where it goes

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