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Gratuity Calculator

Calculate your gratuity amount based on salary and service years

Employee Details

Companies with 10+ employees

Basic Salary + Dearness Allowance

0-11 months

Gratuity Amount

₹0

Last Drawn Salary:₹50,000
Years of Service:10.00 years
Organization Type:Covered
Gratuity Payable:₹0

Calculation Summary

Formula UsedSalary × 15 × Years ÷ 26
Working Days26 days/month
Service Period10 years 0 months
Eligibility StatusEligible
Maximum Limit₹20,00,000
Gratuity Amount₹0

Tax Implications

Fully Tax-Free

For government employees (unlimited)

Up to ₹20 Lakhs Tax-Free

For private sector employees (organizations covered under Act)

Up to ₹10 Lakhs Tax-Free

For organizations not covered under Act

About Gratuity

What is Gratuity?

Gratuity is a lump sum amount paid by an employer to an employee as a token of appreciation for services rendered. It's governed by the Payment of Gratuity Act, 1972.

Eligibility Criteria

  • • Minimum 5 years of continuous service required
  • • Payable on retirement, resignation, or termination
  • • Also payable in case of death or disability
  • • Applicable to organizations with 10+ employees

Calculation Formula

  • • Covered: (Salary × 15 × Service Years) ÷ 26
  • • Not Covered: (Salary × 15 × Service Years) ÷ 30
  • • Salary = Basic + DA
  • • Maximum limit: ₹20,00,000

Payment Timeline

  • • Must be paid within 30 days of becoming due
  • • Delay attracts simple interest
  • • Nominee receives gratuity in case of death
  • • Cannot be attached for debt recovery