Gratuity Calculator

Calculate gratuity amount based on salary and years of service. Get accurate gratuity calculations for retirement planning.

Employment Details

Basic Information

Employment Type

Gratuity Calculation Results

Enter your employment details and click calculate to see results

Gratuity Rules

  • • Minimum 5 years of service required
  • • Calculated as: (Last salary × Years of service × 15) / 26
  • • Maximum gratuity limit: $1,000,000
  • • Tax-free up to $1,000,000

Frequently Asked Questions

Who is eligible for gratuity?

Employees who have completed at least 5 years of continuous service with the same employer are eligible for gratuity. This applies to both voluntary resignation and retirement.

How is gratuity calculated?

Gratuity is calculated using the formula: (Last drawn salary × Years of service × 15) / 26. The last drawn salary includes basic salary plus dearness allowance.

Is gratuity taxable?

Gratuity up to $1,000,000 is tax-free. Any amount above this limit is taxable as per your income tax slab. Government employees enjoy complete tax exemption on gratuity.