What is the Gratuity Calculator?
The gratuity calculator is a free online tool that helps you work out gratuity quickly and accurately. It uses the standard formula Gratuity = (15 x last salary x years) / 26 and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter last drawn monthly salary (basic + DA).
- Enter completed years of service.
- See your gratuity.
Formula used
Gratuity = (15 x last salary x years) / 26Explanation of each input
- Last drawn monthly salary (basic + DA) โ the last drawn monthly salary (basic + da) used in the calculation.
- Years of service (years) โ the years of service used in the calculation.
Understanding your result
- Gratuity amount โ the calculated gratuity amount.
Step-by-step calculation
For the example values 50000, 10 years:
- Apply the formula:
Gratuity = (15 x last salary x years) / 26 - Substitute the values: 15 x 50000 x 10 / 26
- Result: Gratuity about 288462
Worked example
| Inputs | 50000, 10 years |
|---|---|
| Working | 15 x 50000 x 10 / 26 |
| Result | Gratuity about 288462 |
Benefits and practical uses
This calculator saves you time and reduces errors when you need gratuity. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- Covered under the Gratuity Act (15/26 formula).
- Service over 6 months rounds up to a year.
- Tax exemption cap not applied here.
Frequently asked questions
Who is eligible for gratuity?
Employees who complete at least 5 years of continuous service under the Payment of Gratuity Act.
Is gratuity tax-free?
Gratuity is tax-exempt up to 2000000 for covered employees.