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Estimate the gratuity you are entitled to when you leave an organisation, based on your last drawn basic salary plus dearness allowance and your number of years of service.
Results are estimates for planning. For exact figures specific to your situation, speak with our Chartered Accountants.
This calculator gives an estimate only and is not a substitute for professional advice — talk to our team for exact figures specific to your situation.
For employees covered by the gratuity law, gratuity is commonly calculated as:
Gratuity = 15 × Last drawn salary (Basic + DA) × Years of service ÷ 26
Here 15 represents 15 days’ wages for each completed year and 26 is the number of working days in a month. A part-year of more than six months is generally rounded up to a full year.
Have a question about your own case? Call us on +91-141-3012220.
Employees who have completed the minimum period of continuous service with an employer covered by the gratuity law are eligible, with exceptions for death or disablement. Updated labour codes have relaxed conditions for certain fixed-term employees.
Gratuity received by employees is exempt up to the limit notified by the Government; any amount above that limit is taxable as salary.
The last drawn basic salary plus dearness allowance is used for the calculation.
A different formula based on half a month’s salary for each completed year may apply. Please consult us for your case.
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Calculators give estimates only. Our CAs can compute your exact tax and compliance position.