Gratuity Calculator is now live on Tools.Town — a tool that computes the gratuity amount payable under the Payment of Gratuity Act, 1972, based on your last drawn salary and years of service.
Whether you’re planning a job change, negotiating a settlement, or simply want to know what you’re entitled to, Gratuity Calculator gives you the legally correct figure in seconds.
What Does It Do?
Gratuity Amount
Calculates the exact gratuity using the statutory formula: (Last salary × 15/26) × Years of service.
Eligibility Check
Confirms whether you meet the 5-year minimum service requirement under the Gratuity Act.
Tax Breakdown
Shows tax-exempt vs taxable portion — the ₹20 lakh exemption limit is applied automatically.
“Last drawn salary” for gratuity purposes means basic salary + dearness allowance only — not HRA, bonuses, or other components.
How It Works
Enter salary
Enter your last drawn monthly basic salary (and DA, if applicable).
Enter service
Enter total years and months of continuous service with your employer.
Get the amount
The gratuity amount, eligibility status, and tax treatment are shown instantly.
Why We Built It
Gratuity is a statutory entitlement that most employees don’t know how to calculate precisely. The formula involves a 15/26 factor (not 15/30) and uses only basic + DA — not CTC. Getting this wrong leads to either underclaiming or incorrect expectations. Gratuity Calculator applies the correct formula so you know your exact entitlement.
Try It Now
Gratuity Calculator
Calculate gratuity payable under the Payment of Gratuity Act. Enter last salary and years of service for the exact figure.
Also explore: Salary Calculator, HRA Calculator, and more in finance tools.
Related Posts
Frequently Asked Questions
What is the gratuity formula?
What is the minimum service period to be eligible for gratuity?
Is there a maximum gratuity amount?
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