Gratuity Calculator
What Is a Gratuity Calculator?
A Gratuity Calculator helps employees estimate the gratuity amount they may receive from their employer after completing at least five years of continuous service. It provides a quick estimate based on salary and years of employment.
How Is Gratuity Calculated?
The gratuity amount is calculated using the employee's last drawn salary and completed years of service.
Formula:
Gratuity = (Salary × 15 × Years of Service) ÷ 26
Benefits of Using a Gratuity Calculator
- Instant calculation
- Better retirement planning
- Accurate estimation
- Useful during job changes
- Helps compare employment benefits
Who Is Eligible for Gratuity?
Employees generally become eligible after completing five continuous years of service with the same employer, subject to applicable laws and regulations.
Factors Affecting Gratuity Amount
- Last drawn salary
- Years of service
- Employer policy
- Applicable gratuity regulations
Example of Gratuity Calculation
If:
- Monthly Salary = ₹50,000
- Years of Service = 10
Then:
Gratuity = (50,000 × 15 × 10) ÷ 26
= ₹2,88,462
Frequently Asked Questions
What is gratuity?
Gratuity is a lump-sum benefit paid by an employer to an employee for long-term service.
Is gratuity taxable?
Tax treatment depends on employment type and prevailing tax rules.
Can I calculate gratuity online?
Yes. Use our Gratuity Calculator above for an instant estimate.
Is five years of service mandatory?
Generally yes, though specific exceptions may apply under law.
Does bonus count in gratuity calculation?
Normally gratuity is calculated using basic salary and eligible components, not performance bonuses.