ToolkitBeeHow to use
- Enter your last monthly basic salary plus dearness allowance (DA).
- Enter your years and months of service.
- Choose your type of employment.
- See your gratuity, whether you are eligible, and how much is tax-free.
Formula
Covered companies: Gratuity = last monthly basic + DA × 15 × years ÷ 26. A final part-year of more than 6 months counts as a full year.
Companies not covered: last monthly basic + DA × 15 × completed years ÷ 30.
Permanent employees need 5 years of service; fixed-term employees need 1 year (paid in proportion). For private employees, gratuity up to ₹20 lakh is tax-free.
Frequently asked questions
What changed with the new labour codes?
From 21 November 2025, fixed-term employees get gratuity after 1 year instead of 5, and basic + DA must generally be at least half of total pay, which increases gratuity for many people.
Do I get gratuity before 5 years?
Permanent employees usually need 5 years, except in case of death or disability. Fixed-term employees qualify after 1 year.
Is gratuity taxable?
For government employees it is fully tax-free. For private employees, up to ₹20 lakh in a lifetime is tax-free and anything above is taxed as salary.