Gratuity Calculator
Payment of Gratuity Act 1972 · Private & Government Sector
AdSense 728×90
Your Details
Employee Type
Private Sector Gratuity Act formula
Government Different formula
Last Drawn Monthly Salary (Basic + DA) ₹
Years of Service10 Years
1 Year40 Years
Eligibility
Gratuity requires 5 continuous years of service. Exception: death or disablement (any tenure qualifies).
Private Sector Formula
Gratuity = (Last Salary × 15 × Years) ÷ 26Government: (Last Salary × 15 × Years) ÷ 30
Gratuity Amount
₹0
Based on 10 years of service
Tax-Free Limit
₹20L
Exempt u/s 10(10)
Taxable Amount
₹0
Above ₹20L limit
Gratuity Calculation
Last Drawn Salary (Basic+DA)₹0/month
Years of Service0 years
FormulaSalary × 15 × Years ÷ 26
Gratuity Amount₹0
Tax-Free Portion₹0
Taxable Portion₹0
AdSense 300×250
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Frequently Asked Questions
Any employee who has completed 5 or more years of continuous service with an employer is eligible for gratuity under the Payment of Gratuity Act, 1972.
Gratuity = (Last drawn Basic + DA × 15 × Years of service) / 26. The "26" represents working days in a month, and "15" is the number of days' salary per year of service.
For private sector employees, gratuity up to ₹20 lakh (raised in 2018) is tax-exempt. For government employees, entire gratuity received on retirement is tax-exempt.
You are not entitled to gratuity if you leave before completing 5 years of continuous service, except in the case of death or disability.
Not exactly. The Supreme Court ruled that if you've completed 4 years and 240 days (roughly 4 years 8 months), it is treated as 5 years for gratuity purposes.