Use the gratuity calculator to know the exact gratuity amount in a few simple clicks!
Gratuity is a lump sum amount of money given by an employer to an employee as a reward for long-term service. It is paid when an employee retires, resigns, is laid off, or is terminated—only if they have completed at least 5 years of continuous service.
In special cases like death or disability due to illness or accident, gratuity can be paid even before completing five years.
Gratuity is governed by the Payment of Gratuity Act, 1972.
You are eligible for gratuity if:
You retire from your job.
You resign after working continuously for 5 or more years.
You are eligible for superannuation (retirement based on age).
You suffer from a serious illness or accident leading to disability.
In case of death, the gratuity is paid to the nominee or legal heir.
To calculate gratuity, you can use the following standard formula:
Gratuity = (15 × Last drawn basic salary + DA × Number of years of service) ÷ 26
Where:
15 = fixed number of days considered for calculation
26 = number of working days in a month
Basic salary + DA = last drawn basic pay + dearness allowance
Years of service = rounded to the nearest full year
If you worked for 5 years and your last basic salary + DA was ₹25,000:
Gratuity = (15 × 25,000 × 5) ÷ 26 = ₹72,115
Zimyo uses a standard formula for calculating formula gratuity that is given below:
G= N*B*15/26
In the formula, the values represent the following things.
N – Number of years an employee has worked in the organization
B– Last drawn basic salary plus dearness allowance (DA) of an employee
G– Gratuity amount an employee is eligible to receive
To better understand the calculation, let’s take an example. If employee A has worked with the organization for 5 years, his basic salary plus dearness allowance amounts to 25,000. Hence:
The amount of gratuity would be: 5*25000*15/26= 72,115
The maximum limit of gratuity is ₹20 lakhs. Anything above this will be treated as ex gratia (voluntary payment) and may be taxable.
Service of more than 6 months in a year is rounded up.
For example:
6 years and 7 months = 7 years
6 years and 5 months = 6 years
A Gratuity Calculator is an online tool that quickly tells you how much gratuity you will get. You just need to:
Enter your last basic salary + DA
Enter total years of service (rounded)
Click calculate — the amount shows instantly!
This is useful for retirement planning or if you’re switching jobs after 5+ years.
Visit the Zimyo Gratuity Calculator online.
Fill in your last basic salary and DA.
Enter your total years of service (rounded).
Click “Calculate” — your gratuity amount will be displayed in seconds.
The Zimyo Gratuity Calculator is an easy-to-use tool, where you just have to enter the last salary drawn and number of years of service. It gives you an estimate of gratuity an employee would receive after giving five or more years to an organization.
The gratuity calculator shows the gratuity amount within seconds of entering the basic details. It helps an individual to plan his future or retirement according to his need for a maximum amount of return.
An individual can access the gratuity calculator from the comfort of their home or anywhere to get the gratuity amount.
You are a government employee (central, state, or local body).
The lowest of these 3 is tax-free:
Actual gratuity received
₹20 lakhs (maximum limit set by the law)
Gratuity calculated using the formula
Example:
If you get ₹14 lakhs as gratuity, and it’s below the ₹20 lakh limit, it is not taxable.
Use the formula:
Gratuity = (15 × Last drawn salary × Years of service) ÷ 26
Or simply use an online Gratuity Calculator.
Tenure of Service                                 Amount payable(gratuity)
Less than a year                           2*basic salary amount
1-5years                                   6*basic salary
5-11 years                                  12*basic salary
11-20 years                                 20*basic salary
15 in the formula of Gratuity calculation represents 15 days of salary for each completed year of service.
Gratuity is applicable after 5 years of service
₹20 lakh is the tax-free upper limit
Time beyond 6 months in a year is counted as 1 full year
You must work for at least 5 years continuously, unless you retire early due to accident or illness.
