Salary
Gratuity Calculator
What you receive on leaving after 5+ years.
How to use this
Gratuity rewards 5+ years at one employer: 15 days’ pay per year of service, tax-free up to ₹20 lakh. Useful to estimate your payout when changing jobs.
Gratuity payable
₹4.62L
Formula15/26 × salary × yrs
Tax-free cap₹20L
After 10 years at ₹80,000/month, gratuity is ₹4,61,538. Eligible after 5 years of service.
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Know the scheme: Gratuity (Payment of Gratuity Act)
| Eligibility | 5 years of continuous service with one employer (waived on death/disability) |
| Formula | (15 ÷ 26) × last drawn basic+DA × completed years of service |
| Tax-free limit | Up to ₹20 lakh across your career |
| Payment deadline | Within 30 days of it becoming due |
Key rules
- Service beyond 6 months in the final year rounds up to a full year in the formula.
- Employers can pay more than the formula, but only ₹20 lakh total enjoys the tax exemption.
- Gratuity is payable on resignation, retirement, death or disablement — not on dismissal for proven misconduct.
Frequently asked
Who is eligible for gratuity?
Employees who complete 5 years of continuous service. Gratuity is tax-free up to ₹20 lakh.
Is the Gratuity Calculator free to use?
Yes — every Arthly calculator is free, with no sign-up or app install required.
How accurate is the Gratuity Calculator?
It uses standard financial formulas and current FY 2025-26 rates. Results are estimates to help you plan, not personalised financial advice — confirm details with your bank, fund or the relevant department.