*Minimum 5 years required for eligibility.
*Gratuity Formula: (15 × Last Drawn Salary × Tenure) / 26
Gratuity Calculator – Estimate Your Gratuity Pay Online
Determine your gratuity payout instantly with LegalBabu’s Gratuity Calculator. Just enter your last drawn salary (basic + DA), total years of service, and get your estimated gratuity amount based on the Payment of Gratuity Act, 1972. The tool uses the standard gratuity formula to help you plan your retirement or exit benefits in seconds. Eligible employees (typically with 5+ years of service) can see how much gratuity they’re entitled to as a lump sum when leaving service or retiring.
What is a Gratuity Calculator?
A Gratuity Calculator is an online tool that helps employees estimate the lump-sum gratuity amount they are entitled to receive from their employer under the Payment of Gratuity Act, 1972.
It calculates gratuity based on your last drawn salary (basic + dearness allowance) and your total years of service, using the standard statutory formula. The calculator gives you a quick estimate of your retirement or exit benefit without manual calculations.
Formula Used: The common formula for gratuity calculation is:
Gratuity=Last Drawn Salary×15×Years of Service/26
How Can a Gratuity Calculator Help You?
A Gratuity Calculator helps you quickly estimate the gratuity amount you may receive under the Payment of Gratuity Act, 1972 without doing complex manual calculations.
Here’s how it helps you:
- Instant Calculation – Get an accurate estimate in seconds by entering your last drawn salary and years of service.
- Retirement Planning – Know how much lump-sum benefit you can expect after completing eligible service
- Job Change Decisions – Evaluate your gratuity amount before resigning or switching jobs
- Tax Planning – Estimate whether your gratuity falls within tax-exempt limits.
It simplifies the calculation process and gives you a clear idea of your end-of-service benefits.
How Does Gratuity Calculator Work?
FAQS
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What is gratuity in India?
Gratuity is a lump-sum reward paid by an employer to an employee for long-term service, governed by the Payment of Gratuity Act, 1972.
- How is gratuity calculated?
- What counts as continuous service?
- Is gratuity taxable in India?
- What happens if I serve less than five years?
- Does bonus or HRA count in gratuity?
- How are partial years treated?
- Is gratuity statutory for all organizations?
- When must an employer pay gratuity?
- Can gratuity be higher than the statutory amount?
