Power Calculators

🎓 Retirement Gratuity Calculator

Calculate the retirement gratuity payable on superannuation (minimum 5 years of service).

By the Power Calculators team Updated

No ratings yet — be the first

Enter details

Fill in the details and click Calculate to see your results.

This calculator is independent and unofficial — not affiliated with, endorsed by, or a representative of the Government of India or any government department. Figures are estimates for informational purposes; verify official figures before making decisions.

Formula at a glance

Retirement Gratuity formula: Emoluments = Basic pay + DA; Gratuity = (Emoluments ÷ 4) × completed six-month periods
How the retirement gratuity works: Emoluments = Basic pay + DA

📱 Also in our Android apps

This calculator is in each of these free apps. Sign in with the same account to keep your history in sync.

  • Financial CalculatorEMI, SIP, PPF, NPS, post office schemes and government-employee calculatorsGet it on Google Play
  • Govt Employee CalculatorSalary, DA, pension and income tax for government employeesGet it on Google Play

Rate this calculator

Was it useful? A quick star rating helps others — and you can leave a comment too.
Rate it: ★ ★ ★ ★ ★

📘 About the Retirement Gratuity Calculator

Retirement gratuity is a one-time payment at retirement to recognise long service. It is based on your last emoluments, which is basic pay plus DA, and the number of completed six-month periods of qualifying service.

Enter your last basic pay, the current DA percentage and your qualifying service to see the gratuity payable.

🧮 Formula

Emoluments
Emoluments = Basic pay + DA
Gratuity
Gratuity = (Emoluments ÷ 4) × completed six-month periods
Maximum by service
For 33 years or more of service: 16.5 × Emoluments

Where

  • Basic pay = last basic pay drawn
  • DA = dearness allowance at retirement
  • The overall statutory ceiling is ₹25 lakh (from 1 January 2024)

✏️ Worked examples

₹56,100 basic, 58% DA, 30 years

You enter
Basic Pay at Retirement₹56,100
DA % at Retirement58%
Qualifying Service — Years30 yrs
Qualifying Service — Months0 mo
You get
Retirement gratuity₹13,29,570
Emoluments (basic + DA)₹88,638
Six-monthly periods counted60 (max 66)
Formula¼ × emoluments × 60 = 15 months of emoluments
TaxFully tax-free for government employees

Gratuity ₹13,29,570.

₹1,23,100 basic, 58% DA, 33 years

You enter
Basic Pay at Retirement₹123,100
DA % at Retirement58%
Qualifying Service — Years33 yrs
Qualifying Service — Months0 mo
You get
Retirement gratuity₹25,00,000
Emoluments (basic + DA)₹1,94,498
Six-monthly periods counted66 (max 66)
Formula¼ × emoluments × 66 = 16.5 months of emoluments
TaxFully tax-free for government employees
Capped at₹25 lakh (amount before cap ₹32,09,217)

Gratuity ₹25,00,000.

🧭 How to use this calculator

What you enter

  • Basic Pay at Retirement (₹)
  • DA % at Retirement (%)
  • Qualifying Service — Years (yrs)
  • Qualifying Service — Months (mo)

What you get

  • Retirement Gratuity
  • Statutory Ceiling

❓ Frequently asked questions

What is the gratuity ceiling?

₹25 lakh since 1 January 2024. It rises by 25% each time DA increases by another 50%.

Is gratuity taxable?

Retirement gratuity for central government employees is exempt from income tax.

What service counts?

Qualifying service is counted in completed six-month periods.

How is retirement gratuity calculated?

¼ × (basic + DA) × number of completed six-monthly periods, up to 66 periods (16½ months' emoluments) and ₹25 lakh.

What is the maximum gratuity for central government employees?

₹25 lakh from 1 January 2024.