Gratuity
Gratuity Calculator
Estimate gratuity as (15/26) × last monthly basic plus DA × completed years of service, optionally capped. Confirm current law and your contract.
Formula used
Years are completed (floored) years of service. Last drawn salary is monthly basic plus DA. Tax on gratuity and employer-specific schemes are not modelled.
Gratuity formula
Gratuity = min(Cap, (15 / 26) × Salary × Years)
Salary is last drawn monthly basic plus DA. Years are completed years of service. The cap is an editable assumption.
Frequently asked questions
Do I need five years of service?
The calculator still shows a figure below five years, but flags that eligibility is commonly five completed years except in some death or disablement cases.
Is the ₹20 lakh cap official?
It is an editable, unverified assumption from config. The statutory ceiling can change. Set the cap to 0 to see the uncapped formula amount.
Are these tax figures current law?
No. Slabs, rebates and deductions are illustrative assumptions with a last-updated date. They are not verified as current. Confirm on the Income Tax Department website or with a professional before filing.
Related calculators
- Salary CalculatorEstimate monthly in-hand pay from basic, HRA, allowances, PF and an illustrative tax figure.
- CTC to In-Hand CalculatorBreak annual CTC into components and estimate monthly take-home using illustrative tax.
- EPF CalculatorProject provident-fund corpus from basic, employee and employer contributions and an assumed rate.
- NPS CalculatorProject an NPS corpus, lump sum and a simple annuity pension from monthly contributions.
Browse the full directory on the calculators page.
SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.