🎁Gratuity Calculator
Estimate the gratuity you are entitled to on leaving a job after 5+ years of service. Enter your last drawn basic salary (plus DA) and years of service to see the amount under the Payment of Gratuity Act.
Gratuity amount
₹2,88,462
Formula
15/26 × salary × years
Tax-free limit
₹20,00,000
How it works
- Gratuity = (last drawn basic + DA) × 15/26 × completed years of service.
- Service of more than 6 months in the final year rounds up to a full year.
- The statutory tax-free ceiling is ₹20 lakh for employees covered under the Act.
Frequently asked questions
Who is eligible for gratuity?
Employees who complete at least 5 years of continuous service with an employer (the 5-year rule is relaxed in case of death or disablement).
Is gratuity taxable?
For private-sector employees covered by the Act, gratuity is tax-exempt up to ₹20 lakh (lifetime aggregate); any excess is taxed as salary.