Resources / Free calculators

For Indian employees & employers

Gratuity calculator

Estimate your gratuity, then check the service and wage assumptions behind it.

Free, no signupSource check: 26 September 2026Estimates with visible assumptions
1

Your details

Use wages under the current statutory definition, including applicable add-backs. Basic + DA may not be the complete base.

Prior non-government gratuity exemptions reduce the remaining ₹20 lakh lifetime limit.

Calculations run in your browser. No signup required; entered amounts are not submitted.

Illustrative gratuity amount

₹1,15,385

Service condition met on the information entered

Formula
15 × ₹40,000 × 5 ÷ 26
Amount before covered-employment ceiling
₹1,15,385
Illustrative remaining tax exemption
₹1,15,385
Illustrative taxable excess
₹0
Tax exemption also depends on the actual gratuity received and the applicable category. This illustration assumes the calculated amount is paid. Better contractual benefits, government employment, death or disablement, seasonal work and special awards can follow different rules.

Ordinary covered service rounds up only beyond six extra months. Direct fixed-term contracts use a pro-rata illustration after one year; days use a 365-day estimate. Non-covered amounts use completed years and the ten-month average salary. The revised wage definition applies from 21 November 2025.

How this estimate works

Does 4 years and 240 days automatically qualify?

No universal automatic entitlement is assumed here. Continuous-service tests, working days, jurisdiction and applicable judgments matter. For a four-year regular-employment case, the calculator displays an illustration and flags eligibility for review instead of rounding the employee into eligibility.

Is the formula still based only on basic plus DA?

Use qualifying wages under the applicable law. The Labour Ministry says the revised wage definition applies from 21 November 2025, including to gratuity payable after that date. Basic plus DA alone may omit required wage adjustments. For a non-covered voluntary payment, the tax formula uses the relevant ten-month average salary.

How are service and the ₹20 lakh limit handled?

For ordinary covered employment, a part-year longer than six months adds a formula year; exactly six months does not. Fixed-term service uses a pro-rata illustration after one year. The model applies the general private-sector ₹20 lakh ceiling, separately showing remaining tax exemption after prior claims. Better contractual benefits and government-service rules may differ.

Official sources

Sources checked by the AionHRMS product team on 2026-09-26. This planning tool is not a substitute for a payroll or tax review of your circumstances.

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