Gratuity Calculator
Calculate your gratuity amount based on last drawn salary and years of service under the Payment of Gratuity Act.
🏦Employment Details
Last Drawn Salary
₹60.0K
Service Period
15 years
Tax Implications
Gratuity Quick Reference
Formula Used
Gratuity = (Basic + DA) × 15 × Years / 26Gratuity by Service Years
Key Rules
- • Minimum 5 years of continuous service
- • Tax exempt up to ₹20,00,000
- • Service of 6+ months counts as full year
- • Payable on retirement, resignation, or death
- • Death/disability: No 5-year minimum needed
Both Categories
Calculate for employees covered and not covered under Gratuity Act.
Tax Analysis
See tax-free and taxable portions of your gratuity.
Service Table
Quick reference table showing gratuity for different service years.
How to Use
Select Type
Choose if covered under Gratuity Act or not.
Enter Salary
Set your last drawn basic salary and DA.
Enter Service
Enter total years of continuous service.
View Gratuity
See gratuity amount and tax implications.
The Formula
Gratuity = (Basic + DA) × 15 × Years / 26Frequently Asked Questions
Who is eligible for gratuity?
Any employee who has completed 5 or more years of continuous service. In case of death or disability, the 5-year condition is waived.
Is gratuity taxable?
Gratuity is tax-exempt up to ₹20,00,000 for employees covered under the Act. For government employees, the entire amount is tax-free.
What if I served 4 years and 7 months?
Service of more than 6 months in the last year is rounded up to a full year. So 4 years 7 months = 5 years. But 4 years 5 months = 4 years (not eligible).
Can employer refuse gratuity?
Gratuity is a statutory right. Employer cannot refuse if you meet eligibility. It can be forfeited only in case of termination for misconduct causing damage.
What is the maximum gratuity limit?
The maximum gratuity payable under the Act is ₹20,00,000 (₹20 Lakhs). The tax exemption limit is also ₹20 Lakhs.