🧾 Tax
Gratuity Calculator
Calculate your gratuity entitlement as per the Payment of Gratuity Act, 1972. Enter your last drawn salary and years of service for an accurate calculation.
Gratuity Details
₹1K₹5L
5 yrs50 yrs
0 mo11 mo
Minimum qualifying service: 5 years. Maximum tax-exempt gratuity: ₹20 lakhs (as per latest amendment).
Gratuity Amount
₹--
payable on exit/retirement
Monthly Salary (Basic+DA)--
Completed Years of Service--
Tax-Exempt Limit₹20,00,000
Taxable Gratuity--
Gratuity vs Salary
Annual Salary
Gratuity
Gratuity Formula
Covered by Gratuity Act:
Gratuity = (Basic + DA) × 15 ÷ 26 × Years of Service
Not covered by Gratuity Act:
Gratuity = (Basic + DA) × 15 ÷ 30 × Years of Service
If additional months ≥ 6: round up years by 1
Maximum tax-exempt: ₹20,00,000
Gratuity = (Basic + DA) × 15 ÷ 26 × Years of Service
Not covered by Gratuity Act:
Gratuity = (Basic + DA) × 15 ÷ 30 × Years of Service
If additional months ≥ 6: round up years by 1
Maximum tax-exempt: ₹20,00,000
The denominator 26 represents working days in a month (covered employees). 30 is used for non-covered. Gratuity above ₹20L is taxable at applicable slab rate.
Frequently Asked Questions
You must complete a minimum of 5 years of continuous service with the same employer. However, in case of death or disability, gratuity is paid even before 5 years.
For government employees: fully exempt. For private employees: exempt up to ₹20 lakh (as per latest amendment). Gratuity above ₹20L is taxable as per your income tax slab.
Gratuity is payable in both cases — resignation, termination, retirement, or death — as long as you've completed 5 years of continuous service. For death/disability, the 5-year condition is waived.