Gratuity Calculator India 2026 — Calculate Gratuity Amount
About This Tool
The Gratuity Calculator helps Indian employees estimate the lump-sum gratuity amount payable by their employer upon retirement, resignation, or termination after completing 5 years of continuous service. Governed by the Payment of Gratuity Act 1972, gratuity is calculated based on your last drawn basic salary plus Dearness Allowance (DA) and your total years of service. This calculator supports both organisations covered under the Gratuity Act (10+ employees) and those not covered, applying the correct formula (÷26 or ÷30) automatically. For fixed-term employees, gratuity is now payable after just 1 year under the new Labour Code 2025. Up to ₹20 lakh of gratuity is fully tax-free for private sector employees under Section 10(10) of the Income Tax Act.
How to Use
- Enter your last drawn Basic Salary + DA (monthly amount in ₹)
- Enter your total years and months of service
- Select whether your company is covered under the Gratuity Act