Gratuity & Commutation Calculator

Estimate retirement gratuity using the standard Central Government formula, with an optional statutory ceiling check.

Projected 15/26 formula ₹25 lakh ceiling

Inputs

Basic Pay (₹)

DA Rate (%) DA is included in the emoluments for gratuity.

Qualifying Service (years)

Apply Statutory Ceiling (₹25,00,000)

Formula Gratuity = (Basic Pay + DA) × 15 ÷ 26 × Completed Years of Qualifying Service

Estimated Gratuity

(Basic + DA) × 15 ÷ 26 × Years of Service

Projected

Gratuity Payable

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About gratuity

Retirement gratuity is a lump-sum payment made on retirement or death in service. For Central Government employees, it is calculated using the 15/26 formula on emoluments (Basic Pay + DA), subject to a statutory ceiling of ₹25 lakh (enhanced from ₹20 lakh w.e.f. 01.01.2024 as DA touched 50%). Gratuity is fully exempt from income tax up to the statutory limit for government employees. Death-in-harness cases follow more beneficial rules and are not modelled here.