Calculate your gratuity amount under the Payment of Gratuity Act, 1972 — with the statutory ₹20 lakh cap and 5-year eligibility check.
| Scenario | Years of Service | Gratuity Amount |
|---|
Enter Your Service Details
Fill in your dates of service (or years directly) and salary to calculate your gratuity amount.
A gratuity calculator projects the one-time, lump-sum payment an employer in India owes a long-serving employee under the Payment of Gratuity Act, 1972 — a statutory reward for continuous service, not a savings or investment account you fund yourself. NeftCal's gratuity calculator works as a combined gratuity amount calculator, gratuity eligibility calculator, and gratuity tax-exemption calculator: enter your dates of service (or years directly) and your last drawn Basic + DA salary, and it applies the 15/26 formula used for employees covered under the Act — or the 15/30 variant some employers use voluntarily — capped at the statutory ₹20,00,000 tax-exempt ceiling.
Unlike PPF, EPF, or NPS — savings and investment accounts you build up over years through your own (and sometimes an employer's) contributions, earning interest or market-linked returns — gratuity is entirely employer-funded and pays out as a single lump sum triggered by a specific event: resignation after 5 years of continuous service, retirement, superannuation, death, or disablement. There's no account balance to check and no interest accrues; the amount is fixed at the moment of exit by a formula tied to your final salary and total tenure.
Salaried employees nearing a resignation, retirement, or job change who want to estimate their exit payout; HR and payroll teams estimating gratuity liability for departing staff; job seekers comparing the total exit-benefit value across job offers; and anyone doing long-term retirement or career planning alongside tools like NeftCal's EPF Calculator, PPF Calculator, or NPS Calculator.
Gratuity is often the single largest lump sum many salaried employees in India ever receive from an employer, yet it's frequently overlooked in financial planning because it depends entirely on tenure and final salary rather than personal savings discipline. Knowing your projected gratuity in advance helps you plan around a resignation date — a few extra months of service can round a service period up to the next full year and meaningfully change the payout — evaluate the total exit-benefit value of a job offer, and understand that gratuity is subject to a statutory tax-exempt ceiling above which special ex-gratia tax rules can apply.
The formula uses your last drawn salary and rounded years of service, and is capped at the statutory tax-exempt ceiling
If completed service in the final year of employment is 6 months or more, it rounds up to the next full year. Less than 6 months rounds down. So 9 years 7 months counts as 10 years, while 9 years 4 months counts as 9 years.
The statutory tax-exempt ceiling under Section 10(10) is used in this calculator as ₹20,00,000 for covered employees. Amounts above this cap that are paid voluntarily by the employer are treated as an ex-gratia payment and may not carry the same tax exemption.
From dates of service to a final payout estimate in under a minute
Input the date your continuous service began and the date you resigned, retired, or plan to leave. The calculator computes your exact tenure in completed years and months from these two dates.
If you already know your exact tenure, skip the two dates and use the optional Years of Service override instead — handy for quick what-if scenarios like "what if I stay one more year?"
Input only your Basic Salary plus Dearness Allowance — not your gross CTC, HRA, bonus, or other allowances. The default field shows ₹60,000 as a placeholder; replace it with your own figure.
Choose "Yes (15/26)" if your establishment is covered under the Payment of Gratuity Act, or "No (15/30)" if your employer pays gratuity voluntarily outside the Act. Confirm this with HR if you're unsure.
The calculator applies the statutory rounding rule, computes your gratuity amount, checks it against the ₹20,00,000 cap, flags your eligibility status if you're under 5 years of service, and shows a chart of how the amount would grow with 1, 3, or 5 additional years.
A realistic Indian employment scenario, calculated step by step
Suppose an employee joins a company covered under the Payment of Gratuity Act and works there for 12 years and 7 months before resigning, with a last drawn monthly salary (Basic + DA) of ₹60,000.
| Scenario | Years of Service | Gratuity Amount (15/26) |
|---|---|---|
| Current | 13 | ₹4,50,000 |
| +1 Year | 14 | ₹4,84,615 |
| +3 Years | 16 | ₹5,53,846 |
| +5 Years | 18 | ₹6,23,077 |
Explanation: Notice how the rounding rule matters — this employee's actual tenure was 12 years and 7 months, but the calculation used 13 full years because 7 months exceeds the 6-month threshold. Had they left one month earlier at 12 years and 6 months, the same rule would still round up to 13; had they left at 12 years and 5 months, it would round down to 12 years instead — a difference of roughly ₹34,615 in gratuity from a single month's timing. This is why the calculator's what-if chart, comparing your current figure against 1, 3, and 5 additional years, is useful when deciding on a resignation date.
Cap example: to see the ₹20,00,000 ceiling in action, consider a senior employee retiring after 30 years at a last-drawn salary of ₹1,50,000. The raw 15/26 calculation is (15 × 1,50,000 × 30) ÷ 26 ≈ ₹25,96,154 — but since this exceeds the statutory ceiling as used by this calculator, the amount is capped at ₹20,00,000 for tax-exemption purposes, illustrating why high-salary, long-tenure employees are the group most likely to hit the cap.
How gratuity scales as a share of your final annual salary, by tenure band
Since the 15/26 formula pays roughly half a month's salary for every year of service, a useful way to gauge a gratuity figure is to express it as a share of your final annual salary (last drawn monthly salary × 12). This isn't an official benchmark, but it's a quick way to sanity-check whether a number "looks right" for a given tenure.
| Tenure Band | Gratuity as Share of Final Annual Salary (approx., 15/26) | What It Means |
|---|---|---|
| Under 5 years | 0% (not yet payable) | Below the minimum eligibility threshold, except in case of death or disablement |
| 5 – 14 years | ~24% – 67% of final annual salary | Meets eligibility; a moderate lump sum that grows steadily with each additional year |
| 15 years and above | ~72% of final annual salary or more, rising with tenure | A substantial exit benefit — often one of the largest lump sums a long-serving employee receives |
For near-term planners: if you're approaching the 5-year mark, a small delay in your resignation date can be the difference between receiving nothing (under the Act) and becoming fully eligible — worth confirming your exact join date and any breaks in service with HR before deciding when to leave.
For long-tenure employees: since the payout scales linearly with both salary and years of service, high earners with long tenures are the group most likely to hit the ₹20,00,000 statutory cap — at that point, any additional years or salary growth stop increasing the tax-exempt amount, though your employer may still pay the full formula amount as a partly taxable ex-gratia sum.
Risk considerations: this calculator assumes your service is continuous and that your employer's coverage status and the statutory cap are as you've entered them. It doesn't verify continuity of service, doesn't model forfeiture for misconduct, and doesn't account for an uncovered employer being unable or unwilling to pay a voluntary gratuity scheme in full.
This tool provides a general estimate for educational purposes only and does not constitute personalized financial, tax, or legal advice. Confirm your exact entitlement, coverage status, and current statutory ceiling with your employer's HR/payroll team or a licensed advisor.
Where this gratuity calculator earns its keep
Check whether staying a few more months would round your tenure up to the next full year before you hand in your notice.
Estimate the lump sum you'll receive at superannuation as part of your broader retirement income picture.
Factor gratuity into the total exit-benefit value of a new role, not just the headline CTC.
Quickly estimate gratuity liability for a departing employee ahead of a formal full-and-final settlement.
Understand your statutory floor before discussing a severance package or negotiated exit date.
Estimate the death-in-service gratuity payable to a nominee, where the 5-year eligibility condition is waived.
Model the gratuity payable if service ends early due to disablement, another case where the 5-year rule doesn't apply.
Check exactly when you cross the 5-year continuous-service threshold required under the Act.
Compare an employer's stated gratuity policy against the statutory 15/26 minimum for covered establishments.
Sanity-check the gratuity line item on your official full-and-final settlement against the statutory formula.
See exactly how much the 15/26 versus 15/30 divisor changes your payout for the same salary and tenure.
What understanding your gratuity does for your planning, and where this calculator can't replace HR or a licensed advisor
Quick-reference comparison of the two gratuity formulas this calculator supports
| Feature | Covered Under the Act (15/26) | Not Covered (Voluntary, 15/30) |
|---|---|---|
| Legal basis | Statutory right under the Payment of Gratuity Act, 1972 | Employer's voluntary policy or contract |
| Formula divisor | 26 (assumed working days in a month) | 30 (calendar days in a month) |
| Formula | 15 × Last Drawn Salary × Years ÷ 26 | 15 × Last Drawn Salary × Years ÷ 30 |
| Payout for same inputs | Higher (smaller divisor) | Lower |
| Tax-exemption ceiling | ₹20,00,000 under Section 10(10), as used by this calculator | Same ceiling may apply per rules, but the payment itself isn't statutorily guaranteed |
| Enforceability | Legally mandated once eligibility conditions are met | Depends entirely on the employer's own contract or policy |
| Typical establishments | Establishments with 10+ employees (factories, shops, companies) | Very small establishments or discretionary employer schemes |
Common questions about gratuity
Official guidance to complement this calculator — not a substitute for licensed financial or legal advice
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