Gratuity Calculator

Gratuity is a super straight concept - it's a way of rewarding you for staying in a company for 5 years or more. If you're someone working a corporate job, you probably know that 5 years is a long, long time and you better have good reason to stay in a job that long. Gratuity could be one of those good reasons.

The calculation here is also pretty straightforward. And here's the formula we're using:
G = T x B x 15/26

Where,
G is the gratuity amount that you're eligible for
T is the tenure in the company
B is your last salary (Basic + Dearness Allowance)

Now, since the gratuity calculation thinks in terms of years, any period over 6 months is rounded off to the next year. Say you've worked 4 years and 8 months, you should count that as 5 years. Also good to know that a maximum of ₹20 lakh is exempt from tax.