Gratuity Calculator

Gratuity Calculator — how it works

Gratuity is a lump-sum benefit paid by an employer to an employee who has completed at least 5 years of continuous service, as a form of gratitude for long service. This calculator estimates the amount payable.

Two formulas

Employers covered under the Payment of Gratuity Act use the 15/26 formula (26 working days a month); employers not covered use 15/30. The calculator lets you select which applies to your employer.

Eligibility

You generally need 5 years of continuous service to be eligible, though this requirement is waived in cases of death or disablement.

Tax exemption

Gratuity received is exempt from tax up to ₹20,00,000 across your entire career (for employees covered under the Act). Anything above that limit is taxable as salary income.

The formula

Why use Pretax's gratuity calculator

• Current rates. Slabs and limits are reviewed against the current Finance Act.
• Nothing leaves your browser. Every calculation runs on your device — we never see or store what you type.
• Built by working CAs. The same team that files returns for our clients maintains these formulas.
• Free, no signup. No account and no email required to see a result.

Frequently asked questions

Is gratuity paid even if I resign?

Yes, as long as you've completed 5 years of continuous service, gratuity is payable whether you resign, retire, or are terminated (except for misconduct).

Does part-time or contract work count towards the 5 years?

Generally no — gratuity applies to employees under a regular employment contract; contract and part-time arrangements often don't qualify. Check your specific employment terms.