Gratuity Calculator
Calculate your gratuity amount based on Payment of Gratuity Act. Free, accurate calculation for private & government employees.
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Gratuity Amount
Detailed Breakdown
| Parameter | Value |
|---|---|
| Basic Salary | ₹50.00 K |
| Dearness Allowance | ₹10.00 K |
| Total Salary (Basic + DA) | ₹60.00 K |
| Effective Years of Service | 10 years |
| Gratuity per Year | ₹34.62 K |
| Gratuity per Month | ₹2.88 K |
| Total Gratuity Amount | ₹3.46 L |
Gratuity Formula
Gratuity = (Basic + DA) × 15 × Years of Service / 2615
Days of salary per year of service
26
Working days per month
5 Years
Minimum service required
Eligibility
Minimum 5 years of continuous service required. Applicable to companies with 10+ employees.
Tax Benefit
Gratuity is tax-free up to ₹20 lakhs for employees covered under the Payment of Gratuity Act.
Maximum Limit
Maximum gratuity payable is capped at ₹20 lakhs as per the current government regulations.
Frequently Asked Questions
Understanding Gratuity in India
Gratuity is a monetary benefit given by an employer to an employee for the services rendered during employment. It is governed by the Payment of Gratuity Act, 1972, which applies to factories, mines, oilfields, plantations, ports, railways, and establishments with 10 or more employees.
Key Points About Gratuity
- Employee must complete 5 years of continuous service
- Gratuity is calculated based on last drawn Basic Salary + DA
- Maximum gratuity payable is capped at ₹20 lakhs
- Gratuity up to ₹20 lakhs is tax-free
- 6+ months in the final year is counted as a complete year
- Payable on retirement, resignation, or death of employee
When is Gratuity Payable?
- Superannuation (retirement age)
- Resignation after 5+ years
- Death or disablement (5-year rule relaxed)
- Termination (not due to misconduct)