⭐ Gratuity Calculator

How Gratuity Calculator Works

A Gratuity Calculator helps employees estimate the gratuity amount they are entitled to receive based on their salary and years of service. It simplifies manual calculations and provides instant, error-free results.

Gratuity Calculation Formula with Example

Service Tenure Rounding Rule: The employee's period of service is rounded based on completed months:

• 15 years and 8 months → Rounded up to 16 years
• 15 years and 4 months → Remains 15 years

Types of Employers Under the Gratuity Act, 1972

Type 1: Covered Under Act (10+ employees)

Formula: (15 × Last Drawn Salary × Years of Service) ÷ 26

Example: ₹1,00,000 salary × 7 years = ₹4,03,846

Type 2: Not Covered Under Act

Formula: (15 × Last Drawn Salary × Years of Service) ÷ 30

Example: ₹1,00,000 salary × 7 years = ₹3,50,000

How Can a Gratuity Calculator Help You?

• Instant Gratuity Estimation based on salary & tenure
• Saves time with automated calculations
• Helps in financial and tax planning
• User-friendly and free online tool

Gratuity Taxation Rules in India

• Government Employees: Full tax exemption
• Non-Government (Covered): Exempt up to ₹20L or (Salary × Years × 15/26)
• Non-Government (Not Covered): Exempt up to ₹20L or (½ month's salary × Years)