Gratuity Calculator
Gratuity Calculator: Instantly Calculate Your Retirement Savings
Are you confused about the gratuity amount you’ll receive after your years of hard work? If so, there’s no need to worry. Our advanced Gratuity Calculator is fully prepared to help you. Whether you’re planning for retirement or resigning, this tool provides you with instant, accurate results so you can better secure your financial future.
Who is this Calculator For?
This employee gratuity calculator is designed for any professional who:
- Works in the government (Central/State) or private sector.
- Has completed 5 or more consecutive years of service with the same organization.
- Or wants to calculate their retirement or service gratuity benefits.
Related Tools You’ll Love
Total Time: 2 Minutes, Cost: Free
How to Use the Gratuity Calculator? (Step-by-Step Guide)
Our employee gratuity calculator is very simple and easy to use. If you want to get an accurate result, please follow the steps below correctly:
Step 1: Choose the Type of Gratuity (Select Type)
First, select the correct category from the dropdown menu, such as:
-Retirement Gratuity: If you are retiring after completing your full service.
-Death Gratuity: God forbid, if an employee passes away during their service (the calculation method for this is different).-
-Service Gratuity: Gratuity paid in certain special cases.
Step 2: Fill in Your Basic Details
Date of Birth (DOB): Select your correct date of birth. This will allow the calculator to automatically calculate your Retirement Date (based on the age of 60).
Retirement Type: Select whether you are retiring ‘Superannuation’ (by age) or ‘Voluntary’ (VRS).
Step 3: Enter Service Period (Qualifying Service)
Enter the number of years and months you have worked for the company or organization.
Tip: If you have worked for more than 5 years and 6 months, our calculator rounds it up to the full year, which is a rule of the Gratuity Act.
Step 4: Enter Last Month’s Emoluments (Salary)
Here, you need to enter the total of your last month’s Basic Salary + Dearness Allowance (DA).
Please note: Do not include HRA, Bonus, or conveyance allowance. Only the Basic and DA will be calculated.
Step 5: Calculate & Result
After filling in all the details, click the “Calculate Gratuity” button. In the results section, you will see:
Your estimated gratuity amount.
It will also show the basis on which it was calculated, i.e., the number of ‘six-monthly periods’.
You will also find information about the current government limit (tax-free limit) below.
Gratuity Amount Calculation Formula & Example
Gratuity is calculated under the Payment of Gratuity Act. The standard gratuity amount calculation formula is given below:
- Gratuity = (Last Drawn Salary × Years of Service × 15) / 26
Let’s understand with a manual example:
Assume your Last Basic + DA is ₹50,000 and you have served for 20 years, so the calculation would be something like this.
- Calculation: (50,000 × 20 × 15) / 26
- Result: Approx ₹5,76,923
Note: For Central Government employees, calculations are based on “half-monthly” periods, which our calculator automatically adjusts for.
Gratuity Comparison Table by Years of Service
From the table provided, you can easily see how gratuity changes as years of service increase. Assuming your Basic + DA = ₹40,000:
| Service Duration | Approx Gratuity Amount | Key Benefit |
| 5 Years | ₹1,15,385 | Eligibility Starts |
| 10 Years | ₹2,30,769 | Loyalty Bonus |
| 20 Years | ₹4,61,538 | Significant Corpus |
| 30 Years | ₹6,92,308 | High Retirement Security |
Official Guidelines: For detailed information on the legal regulations and updates related to gratuity, you can read the full Payment of Gratuity Act, 1972 on the Government of India’s official portal here. This will fully help you understand eligibility and the latest amendments.
Pro-Tips & Common Mistakes
- Tax Exemptions: For private sector employees, gratuity up to ₹20 Lakh is tax-free, while according to the latest update, this limit has been increased to ₹25 Lakh for government employees.
- Rounding Off: If you have worked for 5 years and 7 months, our gratuity and pension calculator will consider it as 6 years. However, if it is less than 6 months, the previous year is counted.
- Nomination: Always keep your nominee details updated with your organization to avoid any inconvenience for your family in the event of “Death Gratuity.”
Privacy & Trust
We greatly value your privacy. Any data you enter in this calculator (Salary, DOB, etc.) is not stored on our servers. All calculations are performed in your browser, so your data is 100% safe. Feel free to perform calculations without any worries.
Frequently Asked Questions
Is gratuity paid for less than 5 years of service?
No, according to the Gratuity Act, a minimum of 5 years of continuous service is mandatory. However, this rule does not apply in the case of the employee’s death or disability.
What is the maximum limit for gratuity?
According to the latest rules, the maximum limit for the gratuity amount can be up to ₹25,00,000 (it was previously ₹20 Lakh).
Are Gratuity and Pension the same?
No, Gratuity is a lump-sum amount paid upon retirement, while a Pension is a periodic payment. You can estimate both using our Gratuity and Pension Calculator tool.
Do you get gratuity after resigning?
Yes, if you have completed 5 years with the company, you are still eligible for gratuity even after resigning.
Disclaimer: This gratuity calculator is for estimation purposes only. While we have made every effort to keep the calculation accurate, the final amount depends on your company’s rules and the latest government notifications. Before making any major financial decisions, be sure to consult your HR department or a financial advisor.