Gratuity & Retirement Benefit Calculator — ZYCalculator

A gratuity calculator computes statutory retirement benefits under India Payment of Gratuity Act using the formula: (15 × Last Salary × Service Years) ÷ 26.

Formula & Method

Gratuity = (15 × Last Drawn Salary × Years of Service) ÷ 26

How to Use

  1. Enter Monthly Basic Salary & DA: Provide your last drawn basic monthly salary plus Dearness Allowance.
  2. Set Completed Years of Service: Enter completed tenure years and remaining months (>6 months rounds up).
  3. Check Tax Exemption: View total gratuity payable and statutory tax-free portion up to ₹20 Lakhs.

Frequently Asked Questions

What is the formula for calculating Gratuity in India?

For employees covered under the Payment of Gratuity Act 1972: Gratuity = (15 × Last Drawn Basic + DA × Years of Continuous Service) ÷ 26.

What is the minimum service period required to be eligible for gratuity?

An employee must complete at least 5 years of continuous service with the same employer to become legally eligible for gratuity payment upon resignation or retirement.