Gratuity Calculator

Calculate your gratuity amount based on Payment of Gratuity Act, 1972. Get accurate results with tax implications.

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Fill in your employment information

Gratuity Calculator Output

Enter Your Details

Fill in your salary and service details on the left, then click "Calculate Gratuity" to see your results.

Gratuity Calculator – Calculate Your Retirement Gratuity

Gratuity is a lump sum payment given by an employer to an employee as a token of gratitude for their service. The Gratuity Calculator by ToolsGen helps you estimate your gratuity amount based on your salary and years of service.

This calculator is especially useful for employees covered under the Payment of Gratuity Act, 1972 in India.

What is Gratuity?

Gratuity is a retirement benefit provided by an employer to an employee. It's a gesture of appreciation for the employee's long-term service.

Key features:

  • Tax-free retirement benefit
  • Payable after 5 years of continuous service
  • Maximum 20 lakhs (as per current limit)
  • Governed by Payment of Gratuity Act

How to Use the Gratuity Calculator

Using the calculator is simple:

  1. Enter your last drawn salary
  2. Enter your years of service
  3. Click Calculate
  4. View estimated gratuity amount

How Gratuity is Calculated

The gratuity formula is:

Formula:

Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26
Where:

  • Last Drawn Salary = Basic + Dearness Allowance
  • 15 = Number of days (half a month)
  • 26 = Working days in a month

Eligibility for Gratuity

To be eligible for gratuity:

  • Complete 5 years of continuous service
  • Superannuation (retirement)
  • Resignation (after 5 years)
  • Death or disablement

Tax on Gratuity

Tax treatment varies:

  • Government employees: Fully exempt from tax
  • Private employees: Least of: Actual gratuity, ₹20 lakh, or 15 days' salary × years of service

Benefits of Using ToolsGen Gratuity Calculator

✔ Instant and accurate calculations
✔ Helps in retirement planning
✔ Free to use
✔ User-friendly interface

Who Should Use This Calculator?

This tool is useful for:

  • Employees nearing retirement
  • HR professionals
  • Financial planners
  • Anyone planning for retirement

Frequently Asked Questions (FAQ) - Gratuity Calculator

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