Gratuity Calculator

Your Details

Last Drawn Basic Salary (Monthly) This is your last monthly basic salary, excluding bonuses and overtime.

₹

Dearness Allowance (DA) (Monthly) The DA is considered part of the salary for gratuity calculation.

₹

Years of Service Total number of completed years of service.

Months of Service (Optional) For partial year calculation. Over 6 months is rounded up to a full year under the Act.

Is your employer covered under the Gratuity Act?

Your Gratuity Payout

Live Summary:

✅ You worked for 0 years and 0 months.

✅ Your last drawn salary was ₹0/month.

Your estimated gratuity payout is ₹0.

💡 This amount is tax-free (within the ₹20 lakh limit).

Total Gratuity Payable

₹0

Tax Exempt Gratuity

₹0

Taxable Gratuity

₹0

Final Payout

₹0

Gratuity Growth over Tenure

Benefits Breakdown

What is Gratuity and How is it Calculated?

Gratuity is a sum of money paid by an employer to an employee as a token of appreciation for long-term service. It is governed by the Payment of Gratuity Act, 1972.

Eligibility Criteria:

• You must have completed at least 5 years of continuous service with the same employer.
• The gratuity is payable upon resignation, retirement, or on the employee's death or disablement.

Formulas Used for Calculation:

For employers covered under the Gratuity Act:

Gratuity Amount = (15 / 26) × Last Drawn Salary (Basic + DA) × Completed Years of Service

For employers not covered under the Gratuity Act:

Gratuity Amount = (1 / 2) × Last Drawn Salary (Basic + DA) × Completed Years of Service

Pro Tips:

• Years of Service: For employers covered under the act, if your last year of service is more than 6 months, it is rounded up to a full year. For example, 12 years and 7 months becomes 13 years.
• Tax Exemption: Gratuity is tax-exempt up to a limit of ₹20 lakhs for private-sector employees. Any amount beyond this limit is taxable.
• Check your employer's policy: Some companies may offer a higher gratuity payout than the statutory minimum. Always check your employment agreement.

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