How does the Gratuity Calculator calculate projections?

The Live Trend Go Gratuity Calculator computes mathematical projections directly in your web browser using standard regulatory and banking algorithms without server latency.

Is the Gratuity Calculator free and private?

Yes, the Gratuity Calculator is 100% free with unlimited calculations. Your financial scenario inputs are processed locally in your browser memory and never transmitted or stored on our servers.

Are the formulas used in the Gratuity Calculator updated for current regulations?

Yes. All calculation engines are audited quarterly against official Reserve Bank of India (RBI), Central Board of Direct Taxes (CBDT), and AMFI regulatory frameworks.

Tax & Salary

Gratuity Calculator

Calculate statutory gratuity payout under the Payment of Gratuity Act 1972 and check tax-exempt eligibility.

Runs entirely in your browser
No sign-up, nothing stored
Formula explained below

Service details

Use your last drawn basic salary plus dearness allowance.

Last drawn monthly basic + DA

₹

₹10K₹5L

Completed years

yrs

1 yrs40 yrs

Additional months

0 mo6 or more rounds up a year11 mo

Covered under Payment of Gratuity Act 197215/26 formula. Nearly all private sector companies and corporations with 10+ employees are covered under the Gratuity Act 1972.

Total gratuity payable

₹3,37,500

For 9 years of service at ₹65,000 last drawn basic + DA, using the 15/26 formula.

Tax-free

₹3,37,500

Taxable

₹0

Years counted

9 yrs

Gratuity by years of service

What you would receive after each completed year at ₹65,000 basic + DA. Nothing is payable before 5 years.

Your service (9 yrs)
Other tenures

Eligible: 9 years of service counted

Your 7 extra months count as a full year under the Act, so service is rounded up from 8 to 9 years.

Against the ₹20 lakh tax-free cap

Section 10(10) exempts gratuity up to ₹20,00,000; anything above is taxable.

Cap used17%of ₹20 lakh

Tax-exempt amount100% tax-free: ₹3,37,500
Taxable gratuity: ₹0
Statutory capSection 10(10): ₹20,00,000
Service needed to reach the capAt ₹65,000 basic + DA, 15/26 formula: 54 yrs

Gratuity growth across career milestones

Projected payout at your current basic salary.

Tenure	Calculation formula	Estimated payout
5 years	(15 × ₹65,000 × 5) / 26	₹1,87,500
10 years	(15 × ₹65,000 × 10) / 26	₹3,75,000
15 years	(15 × ₹65,000 × 15) / 26	₹5,62,500
20 years	(15 × ₹65,000 × 20) / 26	₹7,50,000
25 years	(15 × ₹65,000 × 25) / 26	₹9,37,500
30 years	(15 × ₹65,000 × 30) / 26	₹11,25,000

How is gratuity calculated in India?

Under the Payment of Gratuity Act 1972, gratuity is a statutory lump-sum reward paid by employers to employees who have completed at least 5 continuous years of service upon resignation, retirement, or superannuation.

Gratuity = (15 × B × N) ÷ 26

B: Last drawn basic salary + DA (monthly)
N: Completed years of service
15: 15 days of wages for each year of service
26: Working days in a month (excluding 4 Sundays)

Who is eligible for gratuity?

Employees who complete at least 5 continuous years of service with the same employer, paid on resignation, retirement or superannuation. Nearly all private sector companies and corporations with 10+ employees are covered under the Gratuity Act 1972.

What if my employer is not covered by the Act?

The formula uses 30 days in a month instead of 26, and only completed years of service count: (15 × last drawn basic × completed years) ÷ 30.

How much gratuity is tax-free?

Up to ₹20,00,000 is exempt under Section 10(10). Any gratuity above that statutory cap is taxable.

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