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👷 Payment of Gratuity Act 1972
Gratuity Calculator – Calculate Your Gratuity Amount
Find your exact gratuity payout based on salary and service years. Applicable after 5 years of continuous service under the Payment of Gratuity Act 1972.
Gratuity = (15/26) × Last Drawn Salary × Years of Service. Here 15 = working days in half-month, 26 = working days in a month. Last Drawn Salary = Basic Salary + Dearness Allowance only (not HRA, bonus, etc.). Maximum gratuity is ₹20 Lakhs (tax-free).
Is gratuity taxable?▼
Gratuity is tax-free up to ₹20 Lakhs for employees covered under Payment of Gratuity Act. For government employees, entire gratuity is tax-free. For non-covered employees, exemption is lower of: Actual gratuity, ₹20L, or (Half month salary × years). Amount above exemption limit is taxable.
What is the minimum service for gratuity?▼
Minimum 5 years of continuous service is required for gratuity eligibility. Exception: If an employee dies or becomes disabled, gratuity is paid regardless of years of service. 4 years 240+ days is also treated as 5 years by many courts.