Gratuity Calculator — Payment of Gratuity Act 1972
Calculate your legal gratuity payout based on the statutory 15/26 formula and years of continuous service in India.
Enter Your Details
Interactive InputsMinimum 5 years of continuous service required to qualify for gratuity under Payment of Gratuity Act 1972.
If >= 6 months, counted as 1 full year for gratuity calculation.
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Example: Gratuity Payout for 10 Years Service at ₹80k Basic
An employee with 10 years of continuous service resigns with a last drawn Basic Pay of ₹80,000 per month.
- Last Drawn Basic Salary:₹80,000 / month
- Tenure of Service:10 Years
- Formula Applied:(15 × 80,000 × 10) / 26
- Gratuity Payout:₹4,61,538
- Tax Exemption Status:100% Tax-Free (under ₹20L limit)
Key Takeaway: The entire ₹4,61,538 is exempt from income tax under Section 10(10) of the Income Tax Act.
How This Calculation Works (Mathematical Formula)
Based on 26 working days in a month. Service above 6 months is rounded up to the nearest year for covered entities.
Frequently Asked Questions
Under Indian law, employees must complete at least 5 years of continuous service with an employer to be eligible for gratuity (except in cases of death or disablement).
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