CalcGratuity Calculator
Estimate your gratuity payment in India based on the Payment of Gratuity Act, 1972. Inputs: years of service and last drawn basic salary.
Total Estimated Gratuity
Formula & Calculation
Gratuity = (Basic Salary + DA) * (15 / 26) * Completed Years of Service- Basic Salary + DA: Your last drawn basic salary including dearness allowance (if applicable).
- Completed Years of Service: The total number of years you have continuously worked (must be at least 5 years).
How to Use
- Enter your monthly last drawn basic salary.
- Specify the number of completed years of service.
- Check your total eligible gratuity amount (tax-free up to ₹25 Lakhs).
Frequently Asked Questions
Who is eligible for gratuity in India?
An employee is eligible for gratuity after completing at least 5 years of continuous service with an organization that has 10 or more employees.
What is the formula for calculating gratuity?
The gratuity formula is: (Last drawn Basic Salary + DA) * (15 / 26) * Number of completed years of service.
Is gratuity taxable in India?
Gratuity received by government employees is fully tax-exempt. For private-sector employees covered by the Act, it is tax-exempt up to a limit of ₹25 Lakhs.
Can gratuity be paid before 5 years?
The 5-year requirement is waived only in the unfortunate event of the employee's death or disablement due to an accident or disease.
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