Free online Gratuity Calculator for India that estimates retirement or death gratuity using last drawn basic + DA, years of service and the 15/26 formula, with ₹20 lakh tax‑free limit and taxable amount breakdown. Gratuity Calculator for Central Government Employees. Use our Gratuity Calculator to calculate your entitlement and plan your financial future.

Gratuity is a financial benefit provided to employees as a token of appreciation for their continuous service to an organization. It acts as a retirement or resignation benefit under the Payment of Gratuity Act, 1972, applicable to eligible employees in India. The Gratuity Calculator will calculate your entitlement subject to your service fullfilments.

Who is Eligible for Gratuity?

Employees who have completed at least 5 years of continuous service in an organization. Exceptions: In cases of death or disability, the 5-year rule does not apply.

How is Gratuity Calculated?

Gratuity is calculated using this formula for central government employees:Gratuity=(Basic Pay + DA)×Years of Service×12\text{Gratuity} = \text{(Basic Pay + DA)} \times \text{Years of Service} \times \frac{1}{2}Gratuity=(Basic Pay + DA)×Years of Service×21​

Key Points of the Gratuity:

Basic Pay: The fixed salary excluding allowances. DA (Dearness Allowance): Cost of living adjustment to offset inflation. Maximum Gratuity Limit: ₹20 Lakhs (as per government rules).

Benefits of Gratuity, Financial Security:

Helps employees meet post-retirement or resignation expenses. Tax-Free Returns: Gratuity is exempt from tax up to ₹20 Lakhs under Section 10(10) of the Income Tax Act. Recognition of Loyalty: Encourages long-term association with an organization.

Why Use a Gratuity Calculator?

Accuracy: Quickly and accurately compute gratuity amounts.

Transparency: Understand your benefits under government policies.

Financial Planning: Helps employees plan future investments and expenses effectively.