Free gratuity calculator using the (15 x salary x years) / 26 formula, with 5-year eligibility and the 20 lakh tax-exempt cap.
Gratuity is calculated as (last drawn basic + DA) multiplied by 15, divided by 26, multiplied by completed years of service.
Five years of continuous service is required, except on death or disablement where the condition is waived.
Gratuity is exempt from tax up to Rs 20 lakh for employees covered by the Payment of Gratuity Act.
More than six months in the final year counts as a full year; six months or less is ignored.
Avani Business OS computes gratuity from each employee joining date and salary structure automatically, at Rs 29 per employee per month.
A gratuity calculator estimates the lump-sum gratuity payable to an employee on leaving, under the Payment of Gratuity Act, 1972. The formula is (15 × last drawn monthly salary × years of service) ÷ 26, where salary means basic + DA. Avani Business OS computes gratuity automatically during full & final settlement.
For employees covered by the Payment of Gratuity Act: Gratuity = (15 × Last drawn Basic+DA × Completed years of service) ÷ 26. The 26 represents working days in a month and 15 represents 15 days’ wages for each completed year.
An employee becomes eligible for gratuity after completing 5 years of continuous service with the same employer (except in cases of death or disablement, where the 5-year rule is waived). A service period beyond 6 months in the final year is rounded up to a full year.
Yes — the maximum tax-exempt gratuity under the Act is currently ₹20,00,000 (₹20 lakh). Amounts above this may be paid by the employer but are taxable in the employee’s hands. This calculator caps the displayed gratuity at ₹20 lakh.
Avani tracks each employee’s joining date and last drawn basic + DA, so when they exit it calculates gratuity, factors it into the full & final settlement, and records it — no manual formula needed.
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