Salary tools · FY 2026-27
Gratuity calculator
Gratuity is a lump sum your employer pays when you leave after long service. For employees covered by the Payment of Gratuity Act it is 15 days' wages for every completed year — the famous 15/26 formula.
Under the Act, service above 6 extra months rounds up to a full year.
Years counted
Estimated gratuity
Of which tax-free (up to ₹20,00,000)
Good to know
- Eligibility: generally 5 years of continuous service with the same employer (waived on death or disablement). Some employers and newer rules are more generous — your offer letter and HR policy decide.
- Tax: gratuity is tax-free up to ₹20,00,000 in total across your career; anything above is taxed as salary.
- The statutory maximum gratuity payable under the Act is also ₹20,00,000; employers may pay more contractually.
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Please note: estimates only — not tax advice. Tax rules: FY 2026-27. See our methodology page for formulas and sources.