HRA Exemption Calculator
Gratuity Calculator
Estimate the gratuity amount you are eligible to receive.
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What is Gratuity?
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for the services rendered. It is a retirement benefit that is payable to an employee who has completed at least five years of continuous service with the same employer. It is governed by the Payment of Gratuity Act, 1972.
How to Calculate Gratuity?
The gratuity amount is calculated using the formula:
(Last Drawn Monthly Salary × 15/26) × Number of Years of Service
For this formula, “Last Drawn Monthly Salary” includes your Basic Salary and Dearness Allowance (DA). A month is considered to have 26 working days. The number of years of service is rounded to the nearest full year.
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