Calculate gratuity amount in India with the 15/26 formula. Enter last basic salary and years of service to check eligibility and gratuity payable instantly.
Gratuity = last monthly basic + DA × 15 ÷ 26 × years of serviceThe 15/26 factor counts 15 days of salary per completed year out of 26 working days a monthPayable only after 5 years of continuous serviceGratuity calculation formula basic salary works as 15 days of pay per year: last monthly basic plus DA, multiplied by 15/26, multiplied by service years. The 26 counts working days after weekly offs. So 50,000 basic over 10 years means about 2.88 lakh, computed here with eligibility flagged automatically.
Eligibility is the gate: 5 continuous years with one employer (4 years 10 months counts as 5), and gratuity is never portable, since each employer pays separately. It is also basic-only money: HRA and bonuses excluded, which is why it trails CTC expectations.
For is gratuity taxable queries: government staff fully exempt, while private employees are exempt on the least of actual receipt, 20 lakh, or the formula amount. Confirm the taxable slice before spending it.
After 5 years of continuous service with the same employer. Service of 4 years and 10 months is counted as 5 years for this purpose.
For government employees it is fully exempt. For private-sector employees the exempt amount is the least of actual gratuity received, ₹20 lakh, or the 15/26 formula amount.
Only completed years of continuous service count; check your full-and-final statement for the exact figure your employer uses.
A month is counted as 26 working days after excluding 4 weekly offs. The 15/26 factor therefore pays 15 days of salary for every completed year of service.
Only on basic salary plus dearness allowance — never on full CTC. Allowances like HRA and bonuses are excluded, which is why gratuity looks smaller than expected.
Gratuity is not portable. Each employer pays separately after you complete 5 years with them; switching jobs restarts the clock with the new employer.
Last updated: 14 Oct 2026, 00:13 IST