Salary
Gratuity Calculator
Computes statutory gratuity payable under the Payment of Gratuity Act, 1972, based on last drawn salary and years of service.
Your details
₹
yrs
mo
Gratuity payable
₹2,76,923
Taxable portion
₹0
Based on 8 years of qualifying service, your gratuity works out to ₹2,76,923. This entire amount is within the tax-exempt ceiling.
How this is calculated
Covered under the Act: Gratuity = (Last Basic+DA) × 15/26 × Years of Service (6+ months rounds up). Not covered: 15/30 basis on exact tenure.
Source: Exemption ceiling ₹20,00,000 per the Payment of Gratuity (Amendment) Act — verify the current ceiling before relying on this figure.
Frequently asked questions
What is the minimum service period for gratuity?
Generally 5 years of continuous service, with exceptions for death or disablement.
Is gratuity taxable?
It's tax-exempt up to a statutory ceiling (₹20,00,000 for private-sector employees); any amount above that is taxable. Government employees get full exemption.
What's the difference for government vs private employees?
Government employees receive full gratuity exemption regardless of amount; private-sector employees are capped at the statutory ceiling.
Can gratuity be forfeited?
Yes, in specific cases involving termination for proven misconduct — otherwise it's a statutory right once eligible.