Salary & TaxRetirement & Benefits
Gratuity Calculator
Estimate gratuity from monthly basic plus DA and completed service years.
● Calculated privately in your browser
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Methodology & Logic
How the Gratuity Calculator works
Estimate gratuity from monthly basic plus DA and completed service years. Below is the exact mathematical or algorithmic model used by this retirement & benefits utility, along with its key operating assumptions.
Core Formula / Logic
Gratuity estimate = monthly basic plus DA × 15 ÷ 26 × completed years of service.Step-by-step workflow
- Enter your headline compensation, basic pay share, or career dates in the Gratuity Calculator inputs.
- The payroll engine evaluates statutory rules (Gratuity estimate = monthly basic plus DA × 15 ÷ 26 × completed years of service.) and compares applicable FY 2026–27 tax or tenure thresholds.
- Review the monthly and annual breakdown to verify what lands in your bank account versus long-term benefits.
Practical Walkthrough
Worked example & key advantages
Example Scenario
For ₹60,000 monthly basic plus DA and 6 completed years, estimated gratuity is about ₹2.08 lakh.
Why use this Gratuity tool
- Built around Indian payroll conventions, including FY 2026–27 tax slabs, ₹75,000 standard deduction, EPF, and 15/26 gratuity math.
- Editable salary components so you can match your exact offer letter or payslip annexure.
- Private client-side calculation—compare job offers and appraisal increments without sharing salary data.
Important Assumptions & Scope
- Uses the common 15/26 formula for covered employees.
- Standard eligibility is shown after five completed years unless overridden.
- Rounding, exemptions, limits and special cases are not modeled.
- Employer settlement can differ.
Common Questions
Frequently Asked Questions — Gratuity
Clear answers to common questions about methodology, edge cases, and privacy.
Is five years always required?
Five completed years is the common threshold, but legal exceptions and employer policies can apply.
Should I enter CTC?
No. Enter monthly basic salary plus dearness allowance, if applicable.
Is the amount tax-free?
Tax treatment depends on employee type, limits and current rules. This calculator estimates the gross formula amount.