Gratuity is a monetary reward given by an employer to an employee for services rendered to the company, typically paid upon retirement, resignation, or death after at least 5 years of continuous service.

What is the formula for calculating Gratuity?

For employees covered under the Payment of Gratuity Act: Gratuity = (Last Salary × 15 × Years) / 26. For employees not covered: Gratuity = (Last Salary × 15 × Years) / 30.

Is Gratuity taxable in India?

Under the Payment of Gratuity Act, gratuity is tax-exempt up to a maximum limit of ₹20 Lakhs for non-government employees. Any amount received in excess of ₹20 Lakhs is taxable.

Gratuity Calculator 🇮🇳 Indian Scheme

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Estimate the gratuity payout you will receive from your employer. Computes splits for employees covered and not covered by the Payment of Gratuity Act.

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Gratuity Parameters

Last Drawn Salary (Basic + DA / Month)

₹

Years of Continuous Service

Yrs

A minimum of 5 years is typically required to qualify for gratuity payouts under Indian labor laws.

Employer Coverage Type

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How to Use the Gratuity Calculator

Easily compute your post-employment gratuity benefits:

Adjust the Last Drawn Salary slider to reflect your combined monthly Basic Salary and Dearness Allowance (DA).
Drag the Years of Continuous Service slider (ranges from 5 to 40 years).
Select the Employer Coverage Type depending on whether your organization is covered under the Payment of Gratuity Act, 1972.
Click Calculate Gratuity to verify your gratuity splits and taxability.