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Gratuity calculator
Choose government or private. Government gratuity uses basic pay + DA and completed half-years; private gratuity uses 15 days of last salary for each year of service.
Private sector: if your employer is not covered by the Act, the formula uses 30 days instead of 26.
Fill in the form to see the result.
Government employees: retirement gratuity
Under rule 45 of the CCS (Pension) Rules 2021, retirement gratuity is one quarter of a month's emoluments (basic pay + DA) for each completed six-monthly period of qualifying service, up to 66 periods (16½ months' emoluments), with a ceiling of ₹25 lakh. You need 5 years of qualifying service. It applies to NPS employees too.
Death gratuity is paid to the family if an employee dies in service: 2× emoluments for under 1 year of service, 6× for 1 to 5 years, 12× for 5 to 11 years, 20× for 11 to 20 years, and half a month's emoluments for each six-monthly period beyond 20 years (up to 33×).
Private employees: Payment of Gratuity Act
Gratuity is 15 days of last drawn wages for every completed year, where a month counts as 26 working days: last basic + DA × 15 × years ÷ 26. A final part-year of six months or more counts as a full year. The ceiling is ₹20 lakh, and that amount is tax-free.
More calculators
- Central government pension calculatorPension, commutation and DR at retirement
- Leave encashment calculatorCash for earned leave at retirement
- NPS calculatorCorpus, lump sum and annuity pension
- Unified Pension Scheme (UPS) calculatorAssured payout and lump sum under UPS
- UPS vs NPS calculatorCompare the two pension options
Guides
- Pension commutation explainedSwap up to 40% of pension for a lump sum: formula and factor table
- Family pension for central government employeesNormal and enhanced rates, who gets it and how it is taxed
- Additional pension at age 80 and aboveExtra 20% to 100% of basic pension from age 80
- Leave encashment explainedHow unused earned leave turns into cash, and how it is taxed
- UPS vs NPS: how the two pension options compareAssured payout or market-linked corpus: a side-by-side comparison
- Old pension scheme vs NPSDefined-benefit pension against a market-linked corpus
Frequently asked questions
Is gratuity taxable?
Gratuity received by government employees is fully exempt. For private employees it is exempt up to ₹20 lakh in a lifetime under the Gratuity Act formula.
What is the gratuity limit for central government employees?
The ceiling is ₹25 lakh. It was raised from ₹20 lakh when DA reached 50% in January 2024.
Do NPS employees get gratuity?
Yes. Central government employees under NPS and UPS get retirement and death gratuity on the same terms as those on the old pension.