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Gratuity Calculator

Use this gratuity calculator to estimate how much gratuity you will receive based on your last drawn basic salary and years of service, as per Indian labour laws.

Calculate your gratuity amount based on the latest Indian gratuity rules.

Minimum 5 years of service required

6 months or more is rounded up to the next year

Covered under Gratuity Act?

Note: Gratuity is tax-free up to ₹20 lakhs (lifetime limit). Final payout depends on employer policy and eligibility.

Note: This calculator assumes Basic Salary at 40% of CTC, PF at 12% of Basic, standard deduction, and average professional tax. Actual take-home salary may vary based on company policy, location, and benefits. This calculator follows standard Indian salary structures used by most private-sector companies.

FAQs on Gratuity Calculator

Who is eligible for gratuity in India?
An employee becomes eligible for gratuity after completing at least 5 years of continuous service with the same employer. In many cases, 4 years and 240 days is treated as 5 years. The 5-year rule does not apply in case of death or permanent disability.
How is gratuity calculated in India in 2026?
If covered under the Payment of Gratuity Act, gratuity is calculated as (Last Drawn Basic Salary × 15 × Years of Service) ÷ 26. If service exceeds 6 months in the final year, it is rounded up to the next full year.
Is gratuity included in CTC?
Yes, many companies include gratuity as part of the Cost to Company (CTC), typically calculated as 4.81% of basic salary. However, it is not part of monthly take-home salary and is payable only after meeting eligibility conditions.
Is gratuity taxable in India?
Gratuity received by government employees is fully tax-exempt. For private employees, gratuity is tax-free up to ₹20 lakh as a lifetime limit. Any amount exceeding ₹20 lakh is taxable as per applicable income tax slab.
Can I get gratuity if I resign?
Yes, gratuity is payable even if you resign, provided you have completed the minimum required service period of 5 years (with certain exceptions).
What if my employer is not covered under the Gratuity Act?
If the employer is not covered under the Payment of Gratuity Act, gratuity payment is not legally mandatory. Any gratuity paid depends on the company’s internal policy or employment contract terms.
What is the maximum gratuity limit in India?
The maximum tax-exempt gratuity limit in India is ₹20 lakh as per current government rules.