Gratuity Calculator

What is Gratuity Calculator?

Free gratuity calculator India. Calculate gratuity amount as per the Payment of Gratuity Act 1972 for covered and non-covered employees. India-specific financial calculators built for the Indian tax system, RBI guidelines, and Indian banking rates. TekPulse's Gratuity Calculator is completely free — no signup, no ads in results, and no data stored on our servers.

How to Use Gratuity Calculator Online

1. Enter your last drawn basic salary plus DA (Dearness Allowance) per month
2. Enter the number of years of completed service (minimum 5 years for eligibility)
3. Select whether you are covered under the Gratuity Act (applicable for organisations with 10+ employees)
4. View your gratuity amount and whether it falls within the tax-exempt limit (₹20 lakh)
5. Understand the formula: Gratuity = (Last Basic+DA × 15 × Years of Service) / 26

Gratuity Calculator Formula & Calculation

The 15/26 divisor represents 15 days' wages per year of service, with 26 being the standard working days in a month (Payment of Gratuity Act, 1972) for employers covered under the Act. Non-covered employers (voluntary gratuity schemes) typically use a calendar-month divisor of 30 instead. If service beyond the last full year exceeds 6 months, it is rounded up to the next full year; 6 months or less is dropped.

Example: Last drawn Basic + DA = ₹60,000, 12 years 7 months of service, covered employer → rounded to 13 years → Gratuity = 60,000 × (15/26) × 13 = ₹4,50,000.

Key Factors That Affect Your Result

1. Employer coverage — Establishments with 10 or more employees are covered under the Payment of Gratuity Act and must use the 15/26 formula; smaller or exempt employers paying gratuity voluntarily often use 15/30, which yields a lower amount for the same service.
2. Minimum eligible service — Gratuity is payable only after 5 years of continuous service (relaxed to no minimum in case of death or disablement).
3. Tax-free limit — As of our last review, gratuity up to ₹20,00,000 is exempt from income tax under Section 10(10); this is a lifetime cumulative cap across employers, not per employer, and any amount above it is taxed at your income slab rate.
4. Basic + DA definition — Only Basic pay and Dearness Allowance count toward the calculation — not HRA, bonus, or other allowances — so always use the last drawn Basic + DA, not gross salary.

Why Use TekPulse Gratuity Calculator?