Gratuity Calculator
Estimate your retirement gratuity payout based on salary and years of service.
(Basic + DA)
(Min. 5 Yrs)
Gratuity Calculation Formula
Gratuity (G) = b × n × 15 / 26
b = Last Drawn Salary (Basic + DA) = ₹ 1,00,000
n = Number of Years of Service = 6
15 = Number of working days considered per month
26 = Working days in a month (under Gratuity Act)
Your Calculation
Gratuity = (₹ 1,00,000 × 6 × 15) / 26
Gratuity = ₹ 90,00,000 / 26
Gratuity = ₹ 3,46,154
(Basic + DA)₹ 1,00,000
Total Gratuity Payable to You
₹3,46,154
Tax Exempt
₹ 3,46,154
Taxable
₹ 0
* Gratuity up to ₹20 Lakh is exempt from income tax
Gratuity Calculator: Calculate Your Payout Under 2026 Rules
Gratuity is a defined benefit plan and one of the most significant components of your retirement or exit package. With the full implementation of the Social Security Code in late 2025, the way your gratuity is calculated has fundamentally changed. Our gratuity calculator online is fully updated to help you navigate these new regulations and ensure you get the right amount.
The "50% Wage Rule" – Why Your Payout Might Increase
The most significant update for gratuity calculation for private employees in 2026 is the new definition of 'wages.'
Your "Wages" (used for calculation) must be at least 50% of your total CTC.
If your basic salary is low but your allowances (HRA, Special Allowance, etc.) are very high, the excess allowances are now added back to your 'Basic' for gratuity purposes. This often results in a 20–30% increase in the final gratuity amount compared to the old system.
Gratuity Eligibility Criteria (Updated for 2026)
Before using a gratuity calculator, verify your eligibility:
You must complete 5 years of continuous service.
Under the new Code, you are now eligible for gratuity after just 1 year of service on a pro-rata basis.
The 5-year/1-year minimum tenure is waived in case of the employee's death or permanent disability.
Frequently Asked Questions
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