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Gratuity calculator
The lump sum your employer pays when you leave after years of service. Check what you are owed.
The formula
Gratuity = Last basic + DA × 15 × Years of service ÷ 26
Fifteen days’ wages for each completed year, with a month taken as 26 working days. Six months or more in the final year counts as a full year. A last basic of ₹60,000 and ten years of service gives about ₹3.46 lakh. Employers not covered by the law use 30 days instead of 26 and count only completed years.
Who is eligible
Permanent employees usually need five years of continuous service. Under the labour codes, fixed-term employees become eligible after one year. The five-year condition does not apply on death or disablement.
Is gratuity taxable?
For private-sector employees, gratuity up to ₹20 lakh across your career is tax-free. Government employees’ gratuity is fully exempt.
Can an employer refuse to pay?
Only for termination due to specific misconduct. Gratuity must be paid within 30 days of becoming due, with interest if delayed.