India's gratuity is governed by the Payment of Gratuity Act, 1972, and rewards long service with a lump sum that's tax-free up to a statutory cap. The formula is (last drawn basic salary + dearness allowance) × 15 × completed years of service ÷ 26 — with a part-year of more than six months rounding up to a full year.
Employees must complete five years of continuous service to qualify (waived on death or disablement), and the total is capped at ₹20,00,000 (20 lakh), which is also the tax-free ceiling.
Use the calculator below to estimate your Indian gratuity.