Gratuity Calculator
Gratuity on leaving a job, under the 2025 labour codes, with the ₹20 lakh cap.
₹50,000basic + DA×15days' pay×11years÷26days a month=₹3,17,308formula result
The extra 7 months count as a full year.
How gratuity is calculated
If your employer is covered by the gratuity law (usually 10 or more employees), gratuity is your last basic salary + DA × 15 × years of service ÷ 26, and a final part-year of more than 6 months counts as a full year. Otherwise it's ÷ 30, using completed years only.
Permanent employees qualify after 5 years; under the Code on Social Security (in force from November 2025), fixed-term employees qualify after 1 year. Gratuity is capped at ₹20 lakh, and for private-sector employees it is tax-free up to ₹20 lakh. Government employees' gratuity is fully tax-free.
Estimates only, not financial advice. Your bank's or fund's actual figures can differ (rounding, fees, taxes, date conventions). Calculated in your browser; nothing you enter is sent anywhere.