Gratuity Calculator
A Gratuity Calculator helps employees estimate the amount of gratuity they are eligible to receive upon leaving a job after completing a certain period of continuous service. This tool simplifies the process using a standard formula defined under the Payment of Gratuity Act, 1972.
Who Can Use Gratuity Calculator
You can use this calculator if:
- You are a salaried employee in India.
- You have completed at least 5 years of continuous service with your employer (exception: death/disability cases).
- Your organization is covered under the Payment of Gratuity Act, 1972.
Steps to Use the Gratuity Calculator
- Enter your last drawn monthly salary.
- Enter your total years of service (only full years are considered).
- Click on the Calculate button.
- View your gratuity amount instantly.
- Use the Reset button to clear the form and calculate again.
Gratuity Formula
15 = 15 days of salary for each completed year of service.
Last Drawn Salary = Basic Pay + Dearness Allowance (DA).
Years of Service = Total number of completed years (rounded down).
26 = Average number of working days in a month (used for calculation under the Act).
Example
Ankit has worked for 8 years at a company and her last drawn salary (Basic + DA) is ₹50,000.
Gratuity = (15 × 50,000 × 8) / 26
Gratuity = ₹2,30,769.23
So, Ankit will receive ₹2,30,769.23 as her gratuity amount (approx).
Benefits of Using the Toolandgame Gratuity Calculator
The Toolandgame Gratuity Calculator is a user-friendly and efficient tool that allows you to estimate your gratuity amount by simply entering your basic salary and total years of service. It is designed for employees who have completed five or more years of continuous employment.
With this calculator, you can get instant results—your estimated gratuity amount is calculated and displayed within seconds. This helps you plan your post-employment finances wisely by making informed investment decisions for better returns.
You can access and use the Toolandgame Gratuity Calculator anytime, from the comfort of your home or on the go, making it a convenient and practical solution for financial planning.
FAQs
Is gratuity applicable to all employees?
Only employees who have completed 5 years of continuous service in an organization with 10 or more employees are eligible, under the Gratuity Act.
Can an employee receive gratuity before completing 5 years?
Yes, in the event of death or permanent disability, the 5-year rule is waived.
Is there a cap on the gratuity amount?
Yes, as per the latest notification, the tax-free gratuity limit is ₹20 lakh. Any amount above this may be taxable.
What components of salary are considered?
Only Basic Salary + Dearness Allowance (DA) are considered for gratuity calculations.
How is service period counted?
Only completed years of service are taken into account. For example, 6 years and 10 months = 6 years get counted.
Is gratuity applicable if I resign?
Yes, if you’ve completed 5 years or more of service, you are entitled to gratuity even if you resign.
Will I lose the gratuity amount if my employer goes bankrupt?
The gratuity amount would be payable even if your employer goes bankrupt. No court order can put a stay on the gratuity amount.
Is the gratuity calculator free for use?
Yes. You can use the calculator for free.