Cap
Statutory gratuity for covered establishments is capped at ₹20 lakh.
Free tools
Gratuity Calculator
Estimate gratuity under the Payment of Gratuity Act with ₹20 lakh cap. Free tool.
₹
6+ months in the last year counts as a full year. Gratuity capped at ₹20 lakh for eligible employees.
Completed years (rounded): 6 years
Estimated gratuity₹1,73,076.92
Illustrative estimate only. Rules change; this is not tax, legal, or financial advice. Confirm with a qualified professional before filing or paying.
How to use this tool
1
Enter last drawn salary (basic + DA typically)
2
Enter completed years of service
3
View estimated gratuity
4
Read the cap note before paying
Quick steps
- 1
Enter last drawn salary (basic + DA typically)
- 2
Enter completed years of service
- 3
View estimated gratuity
- 4
Read the cap note before paying
Good to know
Formula
Common estimate: last salary × 15/26 × years of service.
Coverage
The Act applies when the establishment meets the employee-count test.
Forfeiture
Misconduct rules can affect payment — this tool does not apply those.
Tax
Exemption limits change; confirm with a CA before treating payout as exempt.
Gratuity Calculator FAQs
Statutory gratuity for covered establishments is capped at ₹20 lakh.
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