Calculate your gratuity amount instantly based on your last drawn salary and years of service — completely free.
| Component | Amount |
|---|---|
| Basic + DA salary | ₹50,000 |
| Service years (rounded) | 0 years |
| Formula (÷26) | ₹50,000 × 15 × 0 ÷ 26 |
| Gross gratuity | ₹0 |
| Tax-free exemption | ₹0 |
| Taxable gratuity | ₹0 |
| ✅ Net gratuity (after tax) | ₹0 |
Check instantly whether you are eligible for gratuity based on your years of service and employment conditions — completely free.
Calculate karein →💰Calculate the exact tax exemption and taxable portion of your gratuity amount based on your employment type and service years — completely free.
Calculate karein →📐Understand and apply the exact gratuity formula step by step with detailed examples for both covered and non-covered employers — completely free.
Calculate karein →Gratuity is a lump sum payment made by an employer to an employee as a reward for long-term service, governed by the Payment of Gratuity Act 1972 in India, payable upon retirement, resignation after 5 years, or death or disablement.
For Act-covered employers: Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 26. For non-covered employers: Gratuity = (Last Drawn Salary × 15 × Years of Service) ÷ 30, where salary includes basic pay and DA.
An employee must complete a minimum of 5 years of continuous service with the same employer to be eligible for gratuity. This condition is waived in case of death or total disablement.
The maximum gratuity payable under the Payment of Gratuity Act is ₹20 lakh. Any amount above this is at the employer's discretion and may attract different tax treatment.
Gratuity is tax-free up to ₹20 lakh for private sector employees covered under the Payment of Gratuity Act. Government employees receive full tax exemption on gratuity with no upper limit. Any amount above the exempt limit is taxable.