Gratuity is a monetary benefit provided by an employer to an employee for their long-term service. It is a token of appreciation paid at the time of retirement, resignation, or termination.

What is the eligibility for gratuity?

An employee is typically eligible for gratuity after completing 5 years of continuous service with the same employer. However, this 5-year rule is waived in case of death or disablement.

How is gratuity calculated?

For employees covered under the Act, the formula is: (15 * Last Drawn Salary * Years of Service) / 26. Here, 'Salary' includes Basic pay and Dearness Allowance (DA).

In India, gratuity for government employees is fully tax-exempt. For private sector employees, gratuity up to ₹20 Lakhs is exempt from income tax under Section 10(10).

Gratuity Calculator - Estimate Your Payout

A Gratuity Calculator is a financial utility used to estimate the amount of gratuity an employee is entitled to receive from their employer upon leaving a job. Use OrangeTool to project your retirement benefits with 100% privacy and accuracy✅no salary data is ever uploaded .

Quick Answer

Gratuity formula: (Last Drawn Salary - 15 - Years of Service) - 26. Requires minimum 5 years of continuous service. Max tax-exempt limit: ₹20 Lakhs.

Example: Salary ₹80,000/month, 10 years service - Gratuity = (80,000 - 15 - 10) / 26 = 4,61,538.

Last Drawn Monthly Salary (Basic + DA) (₹)

Years of Continuous Service You are eligible for gratuity (min 5 years).

Standard - uses the Payment of Gratuity Act (15/26) formula 100% Private - your income data stays on your device Detailed - see exactly how your payout is calculated Last updated: May 2026

About Gratuity Calculator

Optimize your daily tasks with our secure and private utility tools. All calculations are executed locally in your browser, keeping your data protected.

OrangeTool uses **client-side processing** to run all calculation models, image optimization, and document converters. By performing computations in your browser's sandboxed memory, we eliminate the need to upload files or inputs to external servers. This architecture ensures privacy for your data.

Algorithmic Logic & Formulas

The underlying computations are governed by standard mathematical rules and data structures:

            Result = Calculate(Inputs)
        

Technical Matrix & Specifications

Operation Mode	Client-Side (OrangeTool)	Server-Side (Traditional)
Privacy Level	Maximum (No data transfers)	Variable (Requires upload)
Processing Speed	Instant	Dependent on network queue
Offline Support	Yes	No

How to Use Gratuity Calculator - Step by Step

Input the required values, files, or parameters into the form fields.
Double-check the settings (such as formats or rates) for accuracy.
Click the action button to process. The calculation is completed instantly.
Download the generated document, text output, or result to your local device.

Frequently Asked Questions

Are my inputs saved or shared?

No. All calculations are performed locally on your device. We do not store or transmit your data.

Is this tool free to use?

Yes, completely free with no usage limits, paywalls, or registrations.

Does it work offline?

Yes. Once loaded, the tool runs locally and can be used without an active internet connection.

How accurate are the results?

The calculations use standard mathematical and technical formulas, verified for accuracy.

Who reviews these tools?

Our tools are designed by software engineers and reviewed by industry experts to ensure accuracy.

Can I use this on a mobile phone?

Yes. The responsive design works on smartphones, tablets, and desktop computers.

Why are local tools safer?

Local processing eliminates the risk of data intercepts or database leaks on external servers.

How can I contact support?

For feedback or queries, you can reach out via our Contact page.