Gratuity Calculator

Estimate your gratuity entitlement after years of service.

Last Drawn Salary

₹

Years of Service

Yrs

*Usually 5+ years are required for eligibility.

Scenario Analysis (Assumed Returns)

Conservative

10%

33,637

Base

12%

48,231

Higher

14%

68,717

Labels are estimates based on your base rate (12%).

Estimated Gratuity

₹57,692

Last Drawn Salary

₹5,000

Service Years

20 Years

You invest ₹5,000 every month for 20 years. At an estimated 12% annual return, your total investment is ₹5,000 and the estimated total value is approximately ₹57,692. Around ₹20 represents estimated growth.

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How it works

Uses the statutory formula based on last drawn basic salary and tenure.

The formula

Gratuity = (15 × Last Basic × Tenure) / 26

Basic: Basic Salary + DA
Tenure: Years of Service (>4.5 years)

Worked example

Gratuity for 10 years service at ₹80,000 basic.

Pro tips

Gratuity is usually tax-free up to ₹20 Lakh.
Completion of 5 years is mandatory for eligibility.

Common mistakes

Including bonus or HRA in the gratuity calculation.

Go deeper

Concepts to explore

Payment of Gratuity Act 1972

Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.