Gratuity Calculator
Calculate your gratuity amount based on Payment of Gratuity Act, 1972
Gratuity Amount
Gratuity Formula
Gratuity = (Last Drawn Salary × 15 × Years of Service) / 26
= (₹ 60,000 × 15 × 15) / 26
= ₹ 5,19,231
About Gratuity
- Eligibility: Minimum 5 years of continuous service
- Maximum Limit: ₹20,00,000 (increased from ₹10 lakh in 2018)
- Tax Exemption: Up to ₹20 lakh is tax-free for government employees
- For Private Sector: Least of: Actual gratuity, ₹20 lakh, or formula-based amount is exempt
- 15/26: 15 days' wages for every completed year, 26 working days in a month
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Frequently Asked Questions
How can Gratuity Calculator help with retirement planning?
Gratuity Calculator helps you estimate corpus needs, future income, retirement savings growth, or withdrawal sustainability based on your assumptions.
Should inflation be considered in retirement planning?
Yes. Inflation can materially reduce purchasing power over long periods, so retirement planning should always consider future living costs.
Can I test different contribution or return assumptions?
Yes. Adjust the inputs to compare how savings rate, expected return, or retirement duration changes your outcome.
Is this a substitute for full retirement advice?
No. It is a planning aid, but final retirement decisions should consider taxes, healthcare, risk tolerance, and cash flow needs in detail.