Calculate your gratuity, notice pay, and leave encashment in one place - know your number before HR tells you theirs.
Fill in the details on the left and tap Calculate Settlement to see your estimate.
Results: Gratuity · Leave encashment · Notice pay · Net settlement
Gratuity - paid only after 5+ years of service: (Basic + DA) × 15 ÷ 26 × years worked. A period of 6+ months in the final year rounds up to a full year. Capped at Rs. 20 lakh (private sector) or Rs. 25 lakh (government) per the Payment of Gratuity Act, 1972.
Leave encashment - (Basic + DA) ÷ 30 × unused leave days. Only Earned/Privilege Leave is encashable in most states - casual and sick leave typically aren't.
Notice shortfall - served days are worked out from your resignation and last working day; if that's less than the required notice, the shortfall is deducted at (Basic+DA or Gross) ÷ 30 per day, based on whichever your appointment letter specifies. If you select Gross but don't enter it, this falls back to Basic + DA.
Tax - Gratuity above is capped at the same figure as its tax-exemption limit (Sec 10(10)), so it stays tax-free by construction. Leave encashment isn't capped here, so a high salary plus a large leave balance can push it past the Sec 10(10AA) exemption (a lifetime limit shared across employers) - anything above that limit is taxable, so treat that figure as pre-tax.
Everything owed to you after your last working day: unpaid salary, gratuity if you have completed 5+ years, encashment of unused earned leave, any notice-pay shortfall, and other dues - minus anything you owe the company.
(Basic + DA) × 15 ÷ 26 × years worked, only after 5 or more years of service. A final year of 6 or more months rounds up. Capped at Rs. 20 lakh in the private sector under the Payment of Gratuity Act, 1972.
7 years 8 months of service on Basic + DA of Rs. 50,000, with 18 days of unused leave. Gratuity comes to roughly Rs. 2,30,769. The full breakdown is below.
If your last working day falls short of your notice period, the gap is deducted at your daily Basic + DA (or Gross, if your appointment letter says so) rate - the same rule most Indian employers apply.
Bonus, variable pay, ESOP settlement, and TDS on the final payment are not computed here. This is an estimate of the settlement components themselves - always compare it against HR's written statement.
Joined with Basic + DA of Rs. 50,000/month, resigned after 7 years 8 months of continuous service, with 18 days of unused earned leave and no notice shortfall.
7 years 8 months rounds to 8 years, since the final year exceeds 6 months. (Rs. 50,000 × 15 ÷ 26) × 8 = Rs. 2,30,769. Well under the Rs. 20 lakh exemption limit, so it is fully tax-free.
(Rs. 50,000 ÷ 30) × 18 days = Rs. 30,000. Well under the lifetime Section 10(10AA) limit for most employees, so ordinarily tax-free too - though that limit is shared across every employer you have worked for.
Total settlement before any pending dues or deductions: roughly Rs. 2,60,769. Add or subtract unpaid salary, notice shortfall, and any other dues specific to your case using the calculator above.
Generally no. The Payment of Gratuity Act, 1972 requires a minimum of 5 years of continuous service, with one narrow exception - death or disablement, where the 5-year requirement is waived. Resigning at 4 years 11 months, even by a few days, typically means no gratuity is payable.
In most states and company policies, no. Only Earned Leave (also called Privilege Leave) is encashable at exit. Casual leave and sick leave usually lapse unused. Check your specific leave policy, since this varies by state and by employer.
Most appointment letters allow the employer to deduct pay in lieu of the shortfall, calculated per day on your Basic + DA or Gross salary. This calculator applies that same shortfall deduction automatically once you enter your resignation and last working dates.
Gratuity is tax-exempt up to the same limit used to cap it here (Rs. 20 lakh in the private sector, under Section 10(10)). Leave encashment is tax-exempt only up to a lifetime limit shared across all your employers (Section 10(10AA)); above that limit, it is taxable as salary. This calculator does not deduct that tax - treat the leave encashment figure as pre-tax if you are close to the lifetime limit.
There is no single central-law deadline that applies to every employer, and practice varies by state and company policy - commonly somewhere between 30 and 45 days from the last working day is treated as reasonable. If your settlement is significantly delayed beyond what your employer's own policy states, that is worth raising with HR directly, and interest may apply on delayed gratuity payments specifically.