Gratuity Calculator

Enter your last drawn monthly salary and years of service to compute gratuity under the Payment of Gratuity Act — (15 / 26) × salary × completed years, capped at ₹20 lakh.

Counted as 7 completed years (6 months or more rounds up).

Gratuity payable
₹2,01,923
Formula (15 / 26) × salary × years₹2,01,923

For establishments covered by the Payment of Gratuity Act, 1972. Statutory cap ₹20,00,000. Not tax advice.

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Frequently asked

Do I need 5 years of service to get gratuity?

Generally yes. Under the Payment of Gratuity Act, gratuity is payable after at least 5 years of continuous service. This condition is waived if service ends due to death or disablement.

How is the number of years rounded?

Each completed year counts once. If your last part-year is 6 months or more, it is rounded up to a full year; less than 6 months is ignored. For example, 7 years 8 months counts as 8 years.

Is there a maximum gratuity amount?

Yes. The statutory maximum gratuity under the Act is ₹20,00,000. Any amount computed above this cap is limited to ₹20 lakh.

Is gratuity taxable?

Gratuity received by government employees is fully exempt. For others covered by the Act, exemption is broadly the least of the statutory formula amount, actual gratuity received, or the ₹20 lakh limit. Amounts above the exempt portion are taxable. This tool computes the entitlement, not the tax treatment.

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