Calculate your gratuity entitlement as per Indian law. Estimate how much your organisation owes based on salary and service.
Enter the details below to calculate your gratuity accurately
Calculating your gratuity...
Based on the Payment of Gratuity Act, 1972
Here is our Gratuity Calculator, a simple and reliable tool designed to help you calculate gratuity online as per Indian labour laws.
If you are a salaried employee, especially in the private sector, this page will help you understand the calculation of gratuity for private employees and estimate the amount you will receive at the end of your service.
This Gratuity Calculator is ideal for employees, HR professionals, and employers who want a quick and accurate gratuity estimate based on the Payment of Gratuity Act, 1972.
In India, gratuity is a statutory benefit paid by an employer to an employee as a reward for long-term service. It is governed by the Payment of Gratuity Act, 1972, which applies to factories, mines, oilfields, plantations, ports, railway companies, and establishments with 10 or more employees.
Gratuity becomes payable when an employee leaves an organization due to:
Note: In case of death or disability, the minimum service requirement does not apply.
Under Indian law, an employee becomes eligible for gratuity if they have completed at least 5 years of continuous service with the same employer. This rule is applicable in most cases, especially for the calculation of gratuity for private employees.
Continuous service includes:
A Gratuity Calculator is an online tool that helps you estimate the gratuity amount you are entitled to receive based on your salary and years of service. Instead of doing manual calculations, you can calculate gratuity online instantly using the standardized formula.
Our gratuity calculator follows the formula prescribed under the Payment of Gratuity Act, making it accurate and easy to use.
For employees covered under the Payment of Gratuity Act, the formula is:
Gratuity = (Last drawn Basic Salary + Dearness Allowance) × 15 × Years of Service ÷ 26
where:
Note: Any service period exceeding 6 months is rounded off to the next full year for gratuity calculation.
Suppose an employee’s last drawn basic salary plus dearness allowance is ₹30,000 and they have completed 10 years of service.
Gratuity = (30,000 × 15 × 10) ÷ 26 = ₹1,73,077 (approx.)
Using our gratuity calculator, you can get this result instantly without manual effort.
Follow these simple steps to calculate gratuity online:
The gratuity calculator will instantly display your estimated gratuity amount.
For private-sector employees, gratuity calculation follows the same rules if the organization is covered under the Payment of Gratuity Act. However, some private companies may offer higher gratuity payouts as part of their internal policies.
Our gratuity calculator provides a statutory estimate. The final gratuity paid may vary based on company-specific policies.
Gratuity received by employees is subject to income tax as per the Income Tax Act, 1961:
Tax rules are subject to change, so it is advisable to consult a tax professional.
✔ Accurate and law-compliant calculations
✔ Easy way to calculate gratuity online
✔ Helpful for financial and retirement planning
✔ Ideal for private employees and HR professionals
✔ Free, fast, and accessible anytime.
Use our gratuity calculator above to calculate gratuity online in just a few seconds. Understanding the calculation of gratuity for private employees can help you plan your finances better and make informed career decisions.
Bookmark this page for quick access whenever you need to estimate your gratuity amount!
This gratuity calculator provides an estimate based on standard rules under Indian law. The actual gratuity amount payable may differ depending on employer policies, amendments to the law, or individual employment contracts.
