Do I get gratuity if I leave at 4 years and 8 months?

Not automatically. The law asks for five full years of service before any gratuity is due. The "six months rounds up" rule only decides how much you get once you already qualify — it does not shorten the five years. One court ruling treats 4 years and 240 days as enough, but many employers do not follow it. The only way to know where yours stands is to ask in writing, and the useful time to ask is before resigning.

Why is 26 in the formula and not 30?

The Act reckons a month as 26 working days. That makes 15 days’ wages work out to roughly 58% of a month’s salary per year of service, not 50% — so the payment is larger than most people expect.

Tax year 2026-27 · was AY 2027-28

Gratuity Calculator

What you are owed under the Payment of Gratuity Act, and the five-year rule that decides whether you get it.

Your numbers

Nothing you type here leaves your device as you work. Saving is the only thing that sends it anywhere, and only when you ask.

Last drawn monthly basic + DA

₹

₹50 thousand

Not gross salary.

Years of service

years

More than six months in the final year counts as a full year.

Service ended due to death or disablement

This waives the five-year requirement.

Gratuity exemption already used

₹

The ₹20 lakh cap is a lifetime limit across all employers.

₹ MoneyLingo · moneylingo.in

Gratuity Calculator

Worked out on 13/8/2026

What produced these results
Last drawn monthly basic + DA	50000
Years of service	6
Gratuity exemption already used	0

My scenarios (0/10)

Snapshots of your inputs, so you can flip between them — “20 years at 9%” against “15 years at 9.5%”. Stored in this browser only, no account needed.

Gratuity payable

₹1,73,077

(15 / 26) × ₹50,000 × 6 years

Years counted: 6
Tax free: ₹1,73,077
Taxable: ₹0
Lifetime exemption cap: ₹20,00,000

What this means

A month is reckoned as 26 working days, not 30. That is why 15 days' wages works out to roughly 58% of a month's salary per year of service, not 50%.
The ₹20,00,000 exemption is a LIFETIME limit across all employers, not per job.
Employers sometimes pay more than the Act requires. Anything above the statutory formula is taxable in full for a private-sector employee.

Questions people actually ask

Do I get gratuity if I leave at 4 years and 8 months?: Not automatically. The law asks for five full years of service before any gratuity is due. The "six months rounds up" rule only decides how much you get once you already qualify — it does not shorten the five years. One court ruling treats 4 years and 240 days as enough, but many employers do not follow it. The only way to know where yours stands is to ask in writing, and the useful time to ask is before resigning.
Why is 26 in the formula and not 30?: The Act reckons a month as 26 working days. That makes 15 days’ wages work out to roughly 58% of a month’s salary per year of service, not 50% — so the payment is larger than most people expect.