About Gratuity Calculator
What is Gratuity?
Gratuity is a lump sum amount paid by employer to employee as a token of appreciation for services rendered. It's governed by the Payment of Gratuity Act, 1972. Read comprehensive gratuity guide →
Eligibility:
- • Minimum 5 years of continuous service
- • Applicable to organizations with 10+ employees
- • Payable on retirement, resignation, or death
Calculation Formula:
Gratuity = (Salary × 15 × Years) ÷ 26
Based on last drawn basic salary + DA
Tax Implications:
- • Up to ₹20 lakhs is tax-free
- • Excess amount is taxable
- • Different rules for government employees
Gratuity Calculator
Enter basic salary (excluding allowances)
Results
Click Calculate to see results
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