Indian Rupee (₹)

US Dollar ($)

Note: This calculator estimates gratuity benefits as per the Payment of Gratuity Act, 1972. Gratuity is payable to employees who have completed at least 5 years of continuous service.

Gratuity Formula

Gratuity = (Last Drawn Salary × 15/26 × Years of Service)

Where 15 days represents half a month's wages and 26 represents the number of working days in a month.

Last Drawn Salary (Monthly)

₹

Years of Service

Years

Gratuity Calculation Results

Last Drawn Salary ₹0

Years of Service 0 Years

Gratuity Amount ₹0

Taxable Gratuity Amount ₹0

Exemption Limit ₹0

Taxable Gratuity (After Exemption) ₹0

Equivalent in USD $0

Eligibility Criteria

Employee must have completed at least 5 years of continuous service

Applicable to all employees covered under the Payment of Gratuity Act

Gratuity is payable at the time of superannuation, retirement, or resignation

In case of death or disablement, 5-year rule is not applicable

Tax Exemption on Gratuity

The least of the following is exempt from tax:

₹20 Lakhs

Statutory Limit

Actual Gratuity

Received Amount

15/26 × Salary × Years

Calculated Amount

Understanding Gratuity

What is Gratuity?

Gratuity is a monetary benefit given by employers to employees as a token of gratitude for their services. It's governed by the Payment of Gratuity Act, 1972, and is payable upon retirement, resignation, or death.

Calculation Method

• Based on last drawn salary
• 15 days salary for each completed year
• Part of year counts as full year after 6 months
• Maximum gratuity capped at ₹20 lakhs

Tax Benefits

• Tax exemption up to ₹20 lakhs
• Least of calculation methods is tax-free
• No tax on gratuity received by government employees
• Taxable gratuity taxed as per income tax slabs

Gratuity Calculator