GratuityCalc

India Gratuity Calculator 2026

Estimate your gratuity entitlement under the Payment of Gratuity Act 1972. Whether you are a private sector employee or a government worker, our tool provides accurate estimates based on the latest ₹20 Lakh cap.

Payment of Gratuity Act 1972Max cap ₹20 lakh applied
₹

Basic Salary + Dearness Allowance (DA)

6+ months counts as a completed year

Enter your salary and service period to calculate

Using the India Gratuity Calculator

Gratuity is a statutory benefit provided by an employer to an employee as a token of appreciation for their long and meritorious service. In India, it is governed by the Payment of Gratuity Act, 1972.

The Statutory Formula

Gratuity = (Basic + DA) × (15/26) × Years
BasicMonthly Basic Salary
DADearness Allowance
15/2615 days of salary out of 26 working days
YearsCompleted years of service (rounded up if > 6 months)

Key Eligibility Criteria

5 Continuous Years

Minimum service required for eligibility under normal resignation or retirement.

₹20 Lakh Limit

The current maximum tax-exempt limit for gratuity payments in India.

Frequently Asked Questions

How many years are required for gratuity in India?

As per the Payment of Gratuity Act 1972, an employee must complete 5 years of continuous service with the same employer to become eligible for gratuity. Exceptions apply for death or disablement.

What is the formula for gratuity calculation in India?

The formula for employees covered under the Act is: (Last Drawn Basic Salary + DA) × 15/26 × Number of completed years of service.

Is gratuity taxable in India?

For private sector employees, gratuity is exempt from tax up to ₹20 Lakhs. Any amount received above this limit is taxable as per the individual’s income tax slab.

What is the maximum limit for gratuity in India?

Following the 2018 amendment, the maximum tax-free gratuity amount allowed for private sector employees is ₹20 Lakhs.