Free Tool

Gratuity Calculator

Estimate the gratuity payable on leaving a job under the Payment of Gratuity Act, 1972 — based on your last salary and years of service.

Years

Minimum 5 years of continuous service required to be eligible.

Gratuity up to ₹20 lakh is tax-exempt. Amounts above the statutory cap are taxable as per your slab.

Gratuity Payable

Gratuity Amount₹2,76,923
Years counted8 years
Formula factor15 / 26
Calculated gratuity₹2,76,923
Tax-exempt (capped ₹20L)₹2,76,923
Set up a Gratuity Trust for your company

Who is eligible for gratuity?

Employees who complete at least 5 years of continuous service with an employer covered under the Payment of Gratuity Act.

What is the gratuity formula?

For covered employees: (15 / 26) × last drawn Basic+DA × years of service, with part-years above 6 months rounded up.

Is gratuity taxable?

Gratuity up to ₹20 lakh is exempt for private employees. Any amount above the cap is taxable as per your income slab.

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