Gratuity Calculator
Estimate gratuity payable to an employee from last drawn salary (basic + DA) and years of service, as per the Payment of Gratuity Act, 1972.
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Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Rates and reference values are editable defaults and may vary by location, vendor and date. Verify critical figures independently. Varada Nexus accepts no liability for decisions made using this tool.
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Contact Varada Nexus for detailed consultationFAQ
How is gratuity calculated in India?
For establishments covered by the Act: gratuity = (15 ÷ 26) × last drawn salary (basic + DA) × completed years of service.
Is there a maximum gratuity limit?
Yes, tax-exempt gratuity is capped at ₹20,00,000 under current rules.
Who is eligible for gratuity?
Generally employees who complete five years of continuous service, with exceptions for death or disablement.