← All Tools

Gratuity Calculator

Calculate your gratuity as per the Payment of Gratuity Act 1972.

Advertisement · Connect AdSense
Employee Type
Last Drawn Monthly Basic + DA (₹)
₹
Years of Service
Yr
Additional Months (for rounding — 6+ months counts as 1 year)
Mo
Gratuity Amount
₹0
—
Tax-Free Limit
₹20,00,000
Tax Status
—

Formulas Used

Covered by Act: (Basic + DA) × Years of Service × 15/26
6+ months in a year = 1 full year
Not Covered by Act: (Basic + DA) × Years of Service × 15/30
Or as per company policy (whichever is higher)
Maximum gratuity under the Act is limited to ₹20,00,000 (₹20 lakh). Employer may pay more voluntarily.

Tax on Gratuity

Employee TypeTax Exemption
Government employeesFully exempt
Private — Covered by ActExempt up to ₹20L
Private — Not CoveredExempt up to ₹10L or half month salary/year
Advertisement

🔗 Related Tools

Salary CalculatorCTC to in-handIncome Tax CalculatorTax on gratuityRetirement CalculatorRetirement planning