Gratuity Calculator
Estimate gratuity eligibility and amount using the common 15/26 formula, with the current statutory cap shown separately.
Assumptions and limitations
- Formula: last drawn basic × 15/26 × completed years of service.
- The result is an estimate; actual salary definition, eligibility and tax treatment depend on employer and applicable law.
- The statutory cap shown is ₹35.00 Lakh; verify the current limit from an official source.
Illustrative projections only
SmartFintool provides mathematical calculations and educational information. It does not provide personalised investment advice. Mutual fund returns are not guaranteed and tax rules can change.
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- Methodology reviewed:
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₹60.00 K
Estimated Gratuity
₹2.42 Lakh
After 7 completed years
Statutory Cap
₹35.00 Lakh
15/26 Factor
0.5769
Tax treatment depends on the applicable Act, employer type and current exemption limit. Verify with a CA.
How gratuity is calculated
The common formula is last drawn basic salary × 15/26 × completed years of service. The calculator does not automatically apply tax because exemption limits and applicability depend on employer type, current law and individual circumstances.
Frequently Asked Questions
Is five years always required for gratuity?
Gratuity eligibility generally depends on continuous service and applicable law. Five years is a common threshold, but exceptions can apply in cases such as death or disability. Verify eligibility with your employer or a CA.
Which salary is used?
This calculator uses last drawn basic salary. The actual definition under your employment terms may include DA or other qualifying components.