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Gratuity calculator

Enter your last monthly basic + DA and years of service. You see the gratuity due and how much of it is tax-free.

Your service

Is your employer covered by the Payment of Gratuity Act?
Gratuity

₹2,30,769

Based on 8 years counted

Formula15/26 × salary × years
Tax-free (up to ₹20 lakh)₹2,30,769
Taxable₹0
The 5-year rule doesn't apply on death or disablement. For covered employers, more than 6 months in the last year counts as a full year. Non-covered: completed years only, on the average salary of the last 10 months.

Employers: gratuity provisions, payroll and Form 16 can run as one monthly plan. See how

Rules used Payment of Gratuity Act, 1972: 15/26 × last monthly basic + DA × years of service for covered employers (more than 6 months in the last year counts as a full year); 15/30 × average salary of the last 10 months × completed years otherwise. Tax-free up to ₹20 lakh for private-sector employees under section 10(10).

Who is eligible for gratuity?

Employees with at least 5 years of continuous service with the same employer. The 5-year rule doesn't apply on death or disablement.

Is gratuity taxable?

For private-sector employees, gratuity is tax-free up to ₹20 lakh over your career; anything above is taxed as salary.

Is gratuity part of my CTC?

Many employers include a provision of about 4.81% of basic in CTC. You receive it only when you leave after becoming eligible.

This tool gives an estimate for guidance. It isn't tax advice, and nothing you enter is stored.