Gratuity Calculator India
Calculate gratuity as per Payment of Gratuity Act 1972
Gratuity Calculator India
Calculate gratuity amount as per Payment of Gratuity Act 1972. Know your entitlement, tax implications, and plan your retirement corpus.
Employment & Salary Details
Monthly basic salary (excluding allowances)
Gratuity Calculation Results
Gratuity Amount
(15/26) × Salary × Years
Working Salary
Basic salary only
Service Period
(10.5 actual years)
Monthly Equivalent
Average per month of service
Tax Implications
Tax-Free Amount
Exempt under Section 10(10)
Gratuity Summary
Related Calculators
How to Use
- 1Enter your values in the input fields
- 2Review the calculated results
- 3Use the results for your planning
Frequently Asked Questions
How is gratuity calculated under Payment of Gratuity Act?
Gratuity is calculated using the formula: (15/26) × Last drawn salary × Years of service. This means 15 days salary for each completed year of service, considering 26 working days per month. Maximum limit is ₹20 lakhs.
What is the minimum service period required for gratuity?
Minimum 5 years of continuous service is required for gratuity eligibility. However, this condition is waived in case of death or disability of the employee, making them eligible regardless of service period.
Is gratuity taxable in India?
Gratuity is tax-free up to ₹20 lakhs for private sector employees under Section 10(10). For government employees, entire gratuity is tax-free. Any amount exceeding the exemption limit is taxed as salary income.
Which salary components are considered for gratuity calculation?
Basic salary plus Dearness Allowance (if it forms part of retirement benefits) is considered. Bonus, overtime, commission, and other allowances are typically not included in gratuity calculation.
When is gratuity payment due and what if employer delays?
Gratuity must be paid within 30 days of becoming due. If employer delays payment beyond 30 days, they have to pay simple interest from due date. Penalties can also be imposed for willful delay.