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Smart Financial Calculators

Gratuity Calculator

Calculate your gratuity under the 15/26 formula, including the 1-year rule for fixed-term employees, the ₹20 lakh cap and the tax-free amount.

For employers covered by the gratuity law (10 or more employees):

Frequently asked questions

How much gratuity for 5 years with ₹50,000 basic?

15 × 50,000 × 5 ÷ 26 = ₹1,44,231.

Is 4 years 8 months counted as 5 years?

The part-year rounding applies once you are eligible. Courts have accepted 4 years and 240 days as 5 years in some cases, but most employers apply the 5-year rule strictly.

Is gratuity taxable?

For non-government employees it is tax-free up to ₹20 lakh over your career. Government employees' gratuity is fully tax-free.