India Gratuity Calculator
Calculate your gratuity entitlement based on years of service and last drawn salary. See the tax exemption limit and year-by-year accrual.
Gratuity Details
Must be 5+ years to be eligible
Gratuity Estimate
Monthly Basic + DA
₹60,000
Gratuity Amount (15/26 × 10 years)
₹3,46,154
Tax Exemption (Non-Government)
₹20,00,000
Max tax-free amount for private employees
Taxable Gratuity Amount
₹0
Gratuity by Years of Service
| Years of Service | Gratuity Amount (₹) |
|---|---|
| 5 | ₹1,73,077 |
| 6 | ₹2,07,692 |
| 7 | ₹2,42,308 |
| 8 | ₹2,76,923 |
| 9 | ₹3,11,538 |
| 10 | ₹3,46,154 |
Gratuity Formula
Gratuity = (Basic + DA) × (15/26) × Years of Service
- 15 days: Salary per year of service
- 26 days: Standard working days per month
- Basic + DA: Last drawn salary components
- Only completed years are counted (partial years are not eligible)
Eligibility & Key Facts
- Eligibility: Minimum 5 years of continuous service required
- Tax-Free Amount: Up to ₹20,00,000 for non-government employees (unlimited for government employees)
- Payment: Due within 30 days after resignation/retirement/termination
- Components: Calculated on Basic Salary + Dearness Allowance only
- Applicable to: All private sector and government employees
- Partial Years: Not counted (you need to complete 5 full years)
Important Notes
- Gratuity is NOT part of salary; it's a one-time exit benefit
- If separated before 5 years, no gratuity is payable (except in specific cases)
- Gratuity amount is fully tax-free up to the specified limit
- Any amount above the limit is taxable as income
- This calculation applies to private sector employees; government rules may differ slightly
Disclaimer
This calculator provides estimates based on the standard gratuity formula under the Payment of Gratuity Act, 1972. Actual gratuity entitlement may vary based on employment contracts, collective agreements, and specific organizational policies. Consult your HR department or an employment lawyer for accurate gratuity calculations based on your specific situation.
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