Gratuity Calculator

Payment of Gratuity Act 1972

Last drawn basic salary + DA (₹/month)

₹50,000

Years of service (must be 5+ for eligibility)

12 years

Are you covered under the Gratuity Act (most private + govt)?

₹0

Gratuity payable

₹0

Tax-free portion

₹0

Taxable portion

—

Years counted

15 days

Per year basis

How gratuity is calculated

Covered by Gratuity Act: Gratuity = (Last basic + DA) ÷ 26 × 15 × years of service. Years > 6 months counted as a full year.
Not covered: same formula, but use 15-day basis on a 30-day month and use actual completed years (no rounding).
Cap: maximum tax-free gratuity is ₹20 lakh (post-2019 amendment). Above that is taxable at your slab.
Minimum service: 5 continuous years (or 4 yrs 240 days, per Supreme Court interpretation). Enabled after retirement, resignation, disablement or death.

Tip: take gratuity to its true cap — for higher earners the actual entitle-able amount above ₹20L is still paid by employer but taxed federally.