Gratuity Calculator
Secure Your Gratuity with Clear Calculations
Gratuity is a reward for long-term service, paid by employers to eligible employees upon retirement, resignation, or death. Our Gratuity Calculator estimates the amount you’re entitled to under the Payment of Gratuity Act, 1972, based on your last drawn basic salary, years of service, and employer type. Whether you work in a factory or a corporate office, this tool helps you plan your financial future with confidence.
Start by entering your last drawn basic salary, like ₹50,000 for a mid-level employee. Input your years of service, say 10, and select your employer type—covered (under the Gratuity Act, for firms with 10+ employees) or non-covered. The calculator shows your gratuity amount, helping you understand your entitlement and plan for retirement or job transitions.
Gratuity varies by employer type. For example, a ₹50,000 basic salary with 10 years at a covered employer yields ₹2,88,462 (₹50,000 × 15/26 × 10). For a non-covered employer, it’s ₹2,50,000 (₹50,000 × 1/2 × 10). Increase salary to ₹1,00,000, and gratuity doubles to ₹5,76,923 or ₹5,00,000, respectively. Extend service to 15 years, and a covered employer pays ₹4,32,692 for ₹50,000 salary. Test scenarios to know your payout—perhaps ₹75,000 salary for 12 years.
Smart gratuity planning ensures financial security. Confirm your employer’s status under the Gratuity Act—covered firms offer higher payouts. Verify your basic salary (excluding allowances) for accuracy. Gratuity is tax-exempt up to ₹20 lakh (as of 2025), so factor in tax benefits. Use the lump sum for debt repayment, investments, or retirement corpus. This calculator provides clarity, but consult your HR or a financial advisor for service disputes, nominations, or tax planning.
Your years of service deserve fair rewards. This calculator turns your tenure into a clear payout. As of April 2025, with evolving labor laws and costs, knowing your gratuity is key. Input your details, tweak the variables, and secure your entitlement. Let this tool guide you toward financial confidence, ensuring every year worked counts.