Free calculators · India · FY 2026-27
Gratuity calculator
See how much gratuity you're owed when you leave, and whether any of it is taxed.
Your gratuity
₹2,01,923
15 days' wages for each of 7 years, a day being a month's pay ÷ 26.
| Gratuity | ₹2,01,923 |
|---|---|
| Tax-free | ₹2,01,923 |
| Taxable | ₹0 |
How it's worked out
Gratuity = last drawn basic + DA × 15 ÷ 26 × years of service. A part-year of more than six months counts as a full year, so 6 years 7 months counts as 7.
If your employer isn't covered by the law (fewer than 10 employees), gratuity is voluntary and usually worked out as 15 ÷ 30 for completed years only.
Permanent employees qualify after 5 years; since the Labour Codes took effect on 21 November 2025, fixed-term employees qualify after 1 year. Up to ₹20 lakh of gratuity is tax-free over your working life.
Rules and sources
Uses the rules for FY 2026-27 (income-tax slabs, PF ceiling and interest, gratuity, HRA cities), last checked on 10 November 2026. We update them when a Budget or notification changes them.
- Income Tax Department: slabs, rebate and deductions
- EPFO: PF wage ceiling (₹25,000 from 17 Sep 2026)
- EPFO: contribution rates and interest
- Ministry of Labour: the Labour Codes (gratuity)
These are estimates for salaried people below 60, not tax advice. Your payslip can differ: employers structure pay differently, and professional tax has lower slabs we don't show. Check big decisions with your employer's HR or a tax adviser.
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