๐ Gratuity Calculator
๐ Aapki last drawn basic salary (DA ke sath).
๐ Total continuous service years (6 months se upar round off hota hai).
๐ Gratuity Calculator – Free Online Tool
Planning your retirement or job switch becomes easier when you know your gratuity amount. The Gratuity Calculator at FinanceWebTool helps you calculate your gratuity payout instantly by entering just your last drawn basic salary and years of service. This tool is simple, free, and accurate, making financial planning easier for employees across India.
๐ What is a Gratuity Calculator?
A Gratuity Calculator is an online tool that helps employees estimate the lump sum amount they will receive as gratuity from their employer after completing at least 5 years of continuous service.
๐ Gratuity is a retirement benefit given under the Payment of Gratuity Act, 1972 to reward employees for their service.
Using our Free Gratuity Calculator tool, you can instantly know the gratuity payable to you.
๐ Formula / Definition
The gratuity calculation is based on a standard formula:
Gratuity = (Last Drawn Basic Salary + Dearness Allowance) × 15 × Number of Years of Service ÷ 26
- 15 = days of salary considered for each year of service
- 26 = average working days in a month
✅ Example:
If your last drawn basic salary = ₹40,000 and years of service = 10,
Gratuity = (40,000 × 15 × 10) ÷ 26 = ₹2,30,769
⚡ Features of FinanceWebTool’s Gratuity Calculator
- ✅ Free to Use – no hidden charges
- ๐ Instant Results – get your gratuity amount within seconds
- ๐ฐ Accurate Formula – based on Payment of Gratuity Act
- ๐ฑ Mobile-Friendly – use anywhere, anytime
- ๐ User-Friendly Interface – just enter 2 details: salary & service years
๐ก Benefits & Importance of Gratuity Calculator
- Quick Estimation – Saves time by avoiding manual calculations.
- Retirement Planning – Helps you plan finances post-retirement.
- Transparency – Understand what you are entitled to under gratuity law.
- Salary Negotiation – Useful during job switch discussions.
- Financial Security – Encourages long-term employment stability.
๐ Example / Calculation
Let’s calculate step by step:
- Last Drawn Basic Salary (₹) = 50,000
- Years of Service = 12 years
Formula: (50,000 × 15 × 12) ÷ 26 = ₹3,46,154
๐ Your gratuity amount will be ₹3.46 Lakhs.
✅ Advantages & Limitations
Advantages:
- Simple, quick, and accurate
- Free to use online
- Based on standard Indian gratuity law
- Works for both public & private sector employees
Limitations:
- Only applicable if you have completed 5+ years of service
- Does not include additional employer perks or bonuses
- Calculation varies if your company has special gratuity policies
❓ FAQs on Gratuity Calculator
1. Who is eligible for gratuity in India?
Employees who have completed at least 5 years of continuous service with the same employer are eligible, except in cases of death or disability.
2. Is gratuity taxable?
Yes, gratuity is taxable. However, under Section 10(10) of the Income Tax Act, gratuity received up to ₹20 lakhs is tax-exempt for private-sector employees covered under the Gratuity Act.
3. Can I calculate gratuity before leaving a job?
Yes ✅. You can use the Gratuity Calculator online to estimate your gratuity amount anytime.
4. What happens if I change jobs before 5 years?
If you leave before completing 5 years, you are not eligible for gratuity (except in death or disablement cases).
5. Does gratuity include allowances like HRA or bonuses?
No ❌. Gratuity is calculated only on basic salary + dearness allowance (DA), not on HRA, incentives, or other allowances.
๐ Conclusion
The Gratuity Calculator online is a must-use tool for every employee who wants clarity about their retirement or resignation benefits. At FinanceWebTool, we provide easy-to-use financial calculators to help you plan better.
๐ Try the free [Gratuity Calculator] Tool now at FinanceWebTool.com and plan your finances better!
