Gratuity is a monetary benefit given by an employer to an employee for their services upon retirement or exit, usually after 5 years of service.
Enter your last drawn monthly salary (Basic + DA) and the total number of years you have served. Click "Calculate Gratuity" to see the result.
The common formula is: (15 * Last Drawn Salary * Years of Service) / 26. This assumes 15 days of wages for every year of service.
Typically, an employee is eligible for gratuity after completing 5 continuous years of service with the same employer.
Gratuity tax rules vary by country. In some regions, it is tax-free up to a certain limit, while in others, it is fully taxable.