Anvya AI · Free Tool
Calculate your gratuity amount, eligibility check, and tax exemption instantly
Include Dearness Allowance (DA) if applicable
This free gratuity calculator helps employees in India calculate their gratuity entitlement based on the Payment of Gratuity Act, 1972. Enter your last drawn basic salary plus dearness allowance (DA), total years and months of service, and employee type to instantly see your gratuity amount, whether you are eligible, the tax-exempt portion, and any taxable amount. The calculator applies the standard 15/26 formula used by all Indian companies covered under the Gratuity Act.
Gratuity = (Last drawn Basic Salary + DA) × 15 ÷ 26 × Number of years of completed service. The factor 15 represents 15 working days per year, and 26 represents working days in a month.
You are eligible for gratuity if you have completed at least 5 years of continuous service with the same employer. For employees paid monthly, 4 years and 240 days (of the 5th year) is counted as 5 completed years.
As per the Payment of Gratuity Act 1972, the maximum gratuity payable is ₹20,00,000 (₹20 lakh). Any amount above this limit is taxable as income.
For private sector employees, gratuity up to ₹20 lakh is exempt from tax. The tax-exempt amount is the minimum of: (a) actual gratuity received, (b) last drawn salary × 15/26 × years, or (c) ₹20 lakh. For government employees, all gratuity is fully exempt.
Only fully completed years count for gratuity. If you have worked 7 years and 8 months, only 7 years count (unless the 6+ month rule applies). Fractions of a year beyond 6 months in the last partial year are counted as a full year for monthly-paid employees.