Gratuity Calculator
Estimate your tax-free gratuity pay-out based on the Payment of Gratuity Act, 1972.
What is Gratuity?
Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for their long-term service. It is mandatory for establishments with 10 or more employees. To be eligible, an employee must have completed **5 years of continuous service** with the same organization.
Enter Service Details
Input your last drawn basic salary and total years of service to calculate your exact gratuity entitlement.
Total Payable Gratuity Amount
₹0
* Capped at ₹20,00,000 as per current Central Government norms.
Statutory Formula
Core Equation
(15 × Basic Salary × Tenure) ÷ 26
15: Represents 15 days of salary for every completed year.
26: Fixed number of working days in a month for calculation.
Tenure: Rounded to nearest year (6+ months counts as full year).
Calculation Example
If your basic is ₹50,000 and you work for 10 years:
(15 × 50,000 × 10) / 26 = **₹2,88,461**
Continuous Service
Service is considered continuous even with interruptions like sickness, accidents, leave, or lay-offs not due to employee fault.
Tax Exemptions & Payout Rules
Govt Employees
Fully tax-exempt for all Central, State, and Municipal employees regardless of amount.
Private Sector
Tax-exempt up to ₹20 Lakhs. Any amount exceeding this is taxable as per income slabs.
Payment Deadline
Employer must pay within 30 days of last working day or pay interest on delay.
Facing Gratuity Delay?
Our legal team assists in recovery of unpaid statutory dues.
Disclaimer: Gratuity calculations depend on whether an establishment is covered under the 1972 Act. Organizations NOT covered use a different formula (15 days salary of last 10 months avg). Consult your HR for specific coverage.
Need precise global processing?
While these tools provide estimates, our platform handles complex multi-country calculations with zero-penalty guarantees.
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