Free, no sign-in

Gratuity calculator (India)

Gratuity is a lump sum your employer pays when you leave after years of service. See what the law gives you and how much of it is tax free.

About this estimate

Rules used: Code on Social Security, 2020, in force from 21 November 2025, and income tax rules for tax year 2026-27

Estimates only. Your final settlement can differ.

See assumptions and sources

Your employer is covered by the Code on Social Security, 2020. Most employers with 10 or more people are.
Wages mean your last drawn basic pay plus dearness allowance. If allowances are more than half of your total pay, the part above half counts as wages too.
15 days of wages for every year of service, with a month taken as 26 working days. A part year of more than six months counts as a full year.
The law caps gratuity at ₹20 lakh (notification S.O. 1420(E), 29 March 2018, still in force under the Code).
Permanent employees qualify after five years of continuous service, or earlier on death or disablement. Fixed-term employees qualify after one year.
Tax: up to ₹20 lakh across your working life is tax free for private sector and other non-government employees, assuming none of it has been used before. Government employees pay no tax on gratuity.
The formula is the legal minimum. Your employer may pay more under your contract.