Gratuity is a benefit paid by employers to employees as a token of appreciation for their long service.

Who is eligible for gratuity?

Employees who have completed at least 5 years of continuous service with the same employer.

How is gratuity calculated?

Gratuity = (Last drawn salary × 15 × Years of service) / 26, where salary includes basic + DA.

Gratuity up to ₹20 lakh is tax-free. Amount above ₹20 lakh is taxable.

Yes, in case of death or disablement, gratuity can be paid even before 5 years of service.

Tools · Benefits

Find your gratuity entitlement, and how much of it is tax-free, based on your basic salary, DA, and years of service.

Your numbers

Basic salary

₹

DA (Dearness Allowance)

₹

Years of service

yrs

Result

You're not eligible for gratuity yet, a minimum of 5 years of continuous service is required. At 5 years, you'd need 5 more years to qualify.

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Gratuity = (Basic + DA) × Years of service × 15 ÷ 26

Results are estimates for education and planning, not financial advice.

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