Employees with 5+ years of service may receive gratuity under the Payment of Gratuity Act. The formula is (15 × last drawn salary × years of service) ÷ 26, capped at ₹20 lakh. Pitara's gratuity calculator India uses Basic + DA and rounds service years when extra months exceed six.
Gratuity formula breakdown
- Last drawn salary = Basic + Dearness Allowance (not full gross)
- 15/26 factor — 15 days wages per completed year
- Cap — ₹20,00,000 maximum under current law
- 5 years minimum — continuous service (exceptions for death/disability)
Calculate your gratuity
- Open Gratuity Calculator.
- Enter monthly Basic + DA and years of service.
- Add extra months — over 6 months counts as one year.
- View amount with cap applied — verify with HR/CA.
Also see EPF Pension Calculator and Salary Slip Generator.
Frequently Asked Questions
What is the gratuity formula?
(15 × last drawn Basic+DA × years) ÷ 26, capped at ₹20 lakh.
Minimum service period?
Five years continuous service under the Act (exceptions apply).
Is HRA included in salary?
No — gratuity uses Basic and Dearness Allowance.
Is gratuity taxable?
Tax treatment varies — consult a CA for your employer type and amount.
Try it free
Use our Gratuity Calculator tool — runs in your browser, no upload required.
Open Gratuity Calculator