Gratuity Calculator
Calculate your gratuity payout
Gratuity Eligibility
- Minimum 5 years of continuous service required
- Applicable on resignation, retirement, death or disability
- Maximum tax exemption: ₹20 lakh (as per current rules)
Salary Details
Gratuity Amount
Total Gratuity
₹3.46 L
Tax Exempt Amount
₹3.46 L
Maximum exemption: ₹20 lakh
Formula Used:
Gratuity = (Basic + DA) × 15 × Years / 26
Frequently Asked Questions
For employees covered under the Gratuity Act: Gratuity = (Basic + DA) × 15 × Years of Service ÷ 26. For non-covered employees: Gratuity = (Basic + DA) × Years × 0.5 (half month's salary per year).
An employee is eligible for gratuity if they have completed at least 5 years of continuous service. The benefit applies on resignation, retirement, death, or disablement. For death/disablement, 5-year requirement is waived.
There is no maximum limit on gratuity amount payable. However, the tax exemption is limited to ₹20 lakh. Any gratuity above ₹20 lakh is taxable as per your income tax slab.
Gratuity up to ₹20 lakh is tax-exempt under Section 10(10) of Income Tax Act. For government employees, entire gratuity is tax-free. Amount exceeding ₹20 lakh is taxed as per slab rates.
Service of 4 years and 8 months is NOT eligible for gratuity as it's less than 5 years. However, if you complete 4 years and 240 days (or 190 days in case of seasonal work), it's rounded up to 5 years.