Calculate the gratuity due when leaving a job after five or more years of continuous service, based on your last drawn salary.
Under the Payment of Gratuity Act the formula is (15 × last drawn monthly salary × years of service) ÷ 26, where 26 represents working days in a month. Service of six months or more in the final year counts as a full year; less than six months is rounded down. The result is capped at the ₹20 lakh statutory ceiling.
Generally yes — five years of continuous service is the eligibility threshold. The requirement is waived if employment ends due to death or disablement. Some court rulings have accepted 4 years and 240 days as qualifying, though employers vary in whether they apply this.
Last drawn basic salary plus dearness allowance — not your full CTC or gross pay. Using gross salary will substantially overstate the gratuity due.
For employees covered by the Act, gratuity is exempt up to ₹20 lakh across your entire career, not per employer. Anything above that cumulative limit is taxable as salary income.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.