Gratuity Calculator

Calculate your gratuity under the Payment of Gratuity Act 1972 — eligibility, amount and tax.

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If you're a private-sector employee without DA, just enter Basic. Government employees should add DA to Basic here.
Removes the 5-year minimum service requirement.
Gross Gratuity
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Years Used in Formula
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Gratuity per Year of Service
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Monthly Provision by Employer
₹20,00,000
Tax-Free Limit

Tax on Gratuity

Gross Gratuity—
Tax-Free Portion—
Taxable Portion—
Estimated Tax—
Net Gratuity Received—
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Based on the Payment of Gratuity Act 1972 and the ₹20 lakh tax-free limit. The ₹20L limit applies cumulatively across your career, not per employer — if you've received gratuity before, your remaining tax-free headroom will be lower than shown here. Tax on the taxable portion is estimated at a flat slab rate for simplicity; your actual tax depends on your total income for the year. Verify with your HR/payroll team and a tax advisor before relying on these numbers.

Frequently Asked Questions

What is the formula for gratuity calculation in India?

For employees covered under the Payment of Gratuity Act 1972, Gratuity = (Last drawn Basic + DA) × 15/26 × Number of years of service. The 15 represents 15 days' wages and 26 represents the number of working days in a month. For employees not covered under the Act, the divisor is 30 (calendar days) instead of 26.

What is the minimum service period for gratuity eligibility?

You need a minimum of 5 years of continuous service to be eligible for gratuity. The only exception is if employment ends due to death or disability — in that case, gratuity is paid regardless of the number of years served.

Is gratuity taxable in India?

Gratuity received by an employee is tax-free up to ₹20,00,000 over their lifetime (across employers, for those covered under the Payment of Gratuity Act). Any amount received above ₹20 lakh is added to taxable income and taxed at your applicable income tax slab rate.