Retirement
Gratuity Calculator
Estimate the gratuity payable when you leave your employer after 5+ years.
Employment details
Minimum 5 years to be eligible
Covered by Gratuity Act 1972?
Gratuity payable
₹4,61,538
10 completed years
- Raw gratuity
- ₹4,61,538
- Completed years used
- 10
- Tax-free cap
- ₹20,00,000
Last Salary × 15/26 × Years
Formula
How the math works
Gratuity = Last Basic+DA × 15/26 × completed years (capped at ₹20,00,000)
- Last Basic+DA
- Latest monthly salary base
- 15/26
- 15 days salary for each year (26 working days/month)
- Cap
- ₹20 L tax-free
Method
How it works
- 1
Enter your last drawn Basic + DA (monthly).
- 2
Enter your total years of service — 4.5+ years counts as 5 in some cases.
- 3
CalcPe applies the 15/26 rule and caps at ₹20 L.
- 4
Non-covered employees use 15/30 (half-month) rule.
Worked example
A quick walkthrough
Inputs
Last Basic+DA ₹80,000, 10 years of service, covered by the Act.
Steps
- 80,000 × 15/26 × 10
- = 80,000 × 0.5769 × 10
Result
Gratuity ≈ ₹4,61,538 (well within tax-free cap).
Why use it
Why CalcPe’s Gratuity Calculator
- Know your exit payout before resigning.
- Handles both covered and non-covered employees.
- Applies the ₹20 lakh tax-free cap automatically.
- Helpful during CTC negotiations too.
FAQ
Frequently asked questions
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