What is a Gratuity Calculator?

A Gratuity Calculator is an online tool used by employees to calculate the lump sum amount that their employer must give them for their long service. You'll use it whether you're retiring, resigning, or moving to a new job. This calculator will do the heavy lifting for you with just a few pieces of information.

You will enter things like:

• Last Drawn Salary (basic + DA)
• Total Years of Service
• Type of Company (covered under Payment of Gratuity Act, 1972, or not)

Once you enter the information, the calculator will calculate the gratuity payable based on the employee's tenure, the type of company they work (payment of gratuity act, 1972), and exemptions on taxation for the purpose of determining gratuity for tax purposes. So you can easily plan your finances, understand your retirement benefits, and negotiate or advocate for better salaries altogether.

How Does Our Gratuity Calculator Work?

Calculating gratuity manually can be perplexing as companies covered under the Gratuity Act have different rules under the Act than those companies not covered under the Act. Our Gratuity Calculator will make it easier to calculate gratuity in as few as four steps.

1. Last Drawn Salary (INR) - Basic salary + Dearness Allowance.
2. Number of years of service - Completed years in company.
3. Type of company - Covered or non-covered under the Gratuity Act.
4. Click Calculate - Your gratuity amount will be calculated instantly.

Formula for Companies Covered Under the Gratuity Act

Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26

For non-covered companies, the formula adjusts based on actual working days per month.

Benefits of Using This Gratuity Calculator Online

• Accurate and instant calculations
• Understand taxable vs tax-free gratuity portions
• Ideal for retirement planning and salary negotiations
• No spreadsheets or manual errors

Disclaimer

This Gratuity Calculator is provided for educational and informational purposes only. The calculated amount is an estimate and may differ based on company policy, employment terms, and applicable laws. For personalized financial or legal advice, please consult a qualified professional.