Gratuity Calculator

Calculate employee gratuity amount based on salary and service years under Payment of Gratuity Act 1972

Basic + Dearness Allowance
Rounded to years if > 6 months

Gratuity Analysis

₹0.00 Gratuity Amount
0 Total Service Years
₹0.00 Taxable Amount
Monthly Salary: ₹0.00
Service Period: 0 years
Formula Used: --

Government Gratuity

₹0.00 Death/Retirement Gratuity
₹0.00 Basic + DA
0.00 Multiplier
Qualifying Service: 0 years
Maximum Limit: ₹20,00,000
Formula: 1/4 × Emoluments × Service

Service Projection

₹0.00 Projected Gratuity
₹0.00 Current Gratuity
₹0.00 Future Salary
Remaining Years: 0 years
Growth Multiple: 0.00x
Eligibility Status: --

How to Use the Gratuity Calculator

Our comprehensive gratuity calculator provides essential tools for employee gratuity planning under Indian law:

💼 Private Sector Gratuity

Calculate gratuity using standard formula: Gratuity = (Last drawn salary × 15 × Years of service) ÷ 26 for companies covered under Payment of Gratuity Act 1972. For non-covered companies: ÷ 30. Minimum 5 years service required. Maximum limit ₹20 lakh.

🏛️ Government Employee Gratuity

Government gratuity calculated as: Gratuity = (Basic Pay + DA) × 1/4 × Years of service. Different from private sector formula. Higher ceiling of ₹20 lakh. 7th Pay Commission benefits apply for current employees.

📊 Service Projection Tool

Project future gratuity based on current service, expected tenure, and salary growth. Helps in career planning and financial goal setting. Considers annual increment rates and service progression for accurate projections.

Key Rules: Minimum 5 years continuous service required (4 years 8 months eligible). Months > 6 rounded up to next year. Death/disability exempts 5-year rule. Tax-free up to ₹20 lakh. Employer can forfeit for misconduct.

Frequently Asked Questions

How is gratuity calculated in India?
Gratuity is calculated using formula: (Last drawn salary × 15 × Years of service) ÷ 26 for companies covered under Gratuity Act. Last drawn salary includes basic + dearness allowance. For non-covered companies, divide by 30 instead of 26[204][208].
What is the minimum service period for gratuity eligibility?
Minimum 5 years of continuous service is required for gratuity eligibility. However, this doesn't apply in case of death or disablement of employee. Service period of 4 years 8 months is considered eligible as it rounds to 5 years[204][209].
What is the maximum gratuity amount payable?
Maximum gratuity amount is ₹20 lakh as per Payment of Gratuity Act 1972. Any amount above this limit is treated as ex-gratia payment by the employer. This limit applies to both private and government employees[204][211].
Is gratuity taxable in India?
Gratuity up to ₹20 lakh is tax-free under Section 10(10) of Income Tax Act. Amount exceeding ₹20 lakh is taxable as salary income. For government employees, entire gratuity amount received as per rules is tax-free[210][217].
When should gratuity be paid after resignation?
Employer must pay gratuity within 30 days of receiving application from employee. If delayed beyond 30 days, employer must pay simple interest on the gratuity amount. Employee should apply in prescribed format to claim gratuity[209][211].