Calculate your gratuity amount as per the Payment of Gratuity Act, 1972. Eligible after 5 years of continuous service.
| Basic + DA (Monthly) | — |
| Total Service | — |
| Rounded Tenure Used | — |
| Formula Used | — |
| Gratuity Amount | — |
| Tax Exemption Limit | ₹20,00,000 |
| Taxable Gratuity | — |
Gratuity = (Basic Salary + DA) × 15/26 × Years of Service
The factor 15/26 represents 15 working days out of 26 working days in a month. If service includes months ≥ 6, it is rounded up to the next year.
Gratuity = (Basic Salary + DA) × 15/30 × Years of Service
Here, 30 days per month are used instead of 26.
For private sector employees: Gratuity up to ₹20 lakh is fully exempt from income tax (raised from ₹10L in 2019). For government employees: Entire gratuity is tax-exempt.
Q: Is gratuity mandatory?
A: Yes, for organizations with 10 or more employees. It is a legal right under the Payment of Gratuity Act, 1972.
Q: What if I resign before 5 years?
A: You are not entitled to gratuity if you leave before completing 5 years of continuous service, except in case of death or disability.
Q: When must gratuity be paid?
A: Within 30 days from the date of leaving the job. Delayed payment attracts interest.
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