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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.

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