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Online Gratuity Calculator

Total Gratuity Payable:
₹0.00

Bigsun Technologies

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ERP and business software built for growing Indian businesses — from core ERP and CRM to Financial Accounting (FAS) and Construction ERP.

A gratuity calculator is a financial tool that helps employees estimate the amount they are eligible to receive as gratuity at the end of their service. Governed by the Payment of Gratuity Act, 1972 in India, gratuity is a lump sum benefit paid by an employer to employees who have completed at least five years of continuous service.

Using a gratuity calculator online can save time and provide accurate estimates instantly. It is especially useful during job changes, retirement planning, or when negotiating final settlements. The tool is designed for both private and public sector employees to assess their post-employment benefits clearly and easily.

How to Calculate Gratuity Amount?

The most widely used formula is:

Gratuity = (Last drawn salary × 15 × number of years of service) ÷ 26

Where:

Last drawn salary = Basic salary + Dearness Allowance

15 = Number of days’ salary considered for every completed year

26 = Number of working days in a month (as per the Act)

For example, if your last drawn salary is ₹30,000 and you’ve completed 10 years of service:

Gratuity = (30,000 × 15 × 10) ÷ 26 = ₹1,73,077

Using a gratuity amount calculator online ensures you get a quick and precise estimate without manual calculations.

Frequently Asked Questions:

1. Who is eligible for gratuity?

Any employee who has completed at least five years of continuous service with an organization.

2. Is the gratuity amount taxable?

Gratuity received up to ₹20 lakhs is tax-exempt for private-sector employees (subject to conditions).

3. Can I use the gratuity calculator if I switch jobs frequently?

Only if you’ve worked at least 5 continuous years with the same employer or in merged service scenarios.

4. Does the calculator include bonuses or allowances?

No, it only considers basic salary and dearness allowance for calculation.

5. Is this calculator valid for both private and government employees?

Yes, although the exact rules may vary slightly for government employees, the calculate gratuity amount formula remains similar.