Gratuity Calculator
Calculate the gratuity amount you are entitled to under the Payment of Gratuity Act based on your last drawn basic salary and years of service.
Parameters
Results Summary
This calculator determines the results based on the following standard financial formula for Gratuity Calculation:
Variables Glossary
- Gratuity Amount
- Total gratuity payable
- Last Basic Salary
- Basic salary at the time of leaving
- Years of Service
- Total years of continuous service
Under the Gratuity Act, 15 days of last drawn salary for each completed year of service (with parts of year treated as full year if over 6 months).
Who is eligible for gratuity?
Employees who have completed 5 continuous years of service in an organization covered under the Payment of Gratuity Act are eligible for gratuity.
Is gratuity taxable?
Gratuity received by government employees is fully tax-exempt. For non-government employees covered under the Act, the exemption is the lower of actual gratuity, 15/26 × last salary × years of service, or ₹20 lakh.