Gratuity Calculator
Calculate your gratuity amount under the Payment of Gratuity Act, 1972 (India). Enter your salary and years of service below.
Your Gratuity Amount
₹0
Formula Used:
Gratuity = (15 × Salary × Years) / 26
Frequently Asked Questions
Under the Payment of Gratuity Act, 1972, the formula is: Gratuity = (15 × Last Drawn Salary × Years of Service) / 26. Here, "Salary" means Basic + Dearness Allowance (DA), and 15 represents 15 days of salary, while 26 represents the number of working days in a month.
Any employee who has completed at least 5 years of continuous service with an employer covered under the Act is eligible for gratuity. It is paid on retirement, resignation, termination, or death/disablement (5-year rule waived for death/disablement).
Gratuity is tax-exempt up to ₹20,00,000 under Section 10(10) of the Income Tax Act. For government employees, the entire gratuity amount is tax-exempt. The ₹20 lakh limit is a lifetime limit across all employers.