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Calculate gratuity amount instantly with our free online calculator. Supports employees covered & not covered under Payment of Gratuity Act 1972. Get tax exemption breakdown, service period auto-calculation, and detailed reports.
Select your employment category
Enter your salary information
Enter your basic salary excluding allowances
DA is included in gratuity calculation if it forms part of salary
Leave blank if same as basic salary
Enter your employment duration
Enter your details and click Calculate to see your gratuity amount
What is Gratuity? A lump sum payment made by an employer to an employee as a token of appreciation for services rendered.
Eligibility: Minimum 5 years of continuous service with the same employer.
Payment Timeline: Must be paid within 30 days from the date it becomes payable.
Maximum Limit: As per the Payment of Gratuity Act, the maximum gratuity payable is ₹20 lakhs (may vary by country).
Service Duration: Completed 5 years of continuous service
Resignation: Gratuity is payable on resignation after 5 years
Retirement: Payable on superannuation or retirement
Death/Disability: Payable even if service is less than 5 years
Termination: Not payable if terminated for misconduct
Gratuity is a statutory benefit provided to employees as a token of appreciation for their long-term service. Under the Payment of Gratuity Act, 1972, every employee who has completed 5 years of continuous service is entitled to receive gratuity upon resignation, retirement, superannuation, death, or disablement.
Gratuity is calculated based on your last drawn salary (basic + DA) and years of service. The formula differs for employees covered under the Gratuity Act versus those not covered (like government employees). Our calculator handles both scenarios automatically, providing accurate results with tax implications.
For private sector employees:
Based on 26 working days per month
For government employees:
Based on 30 calendar days per month
| Benefit | Gratuity | Provident Fund (PF) | Pension |
|---|---|---|---|
| Payment Type | One-time lump sum | Accumulated savings | Monthly payments |
| Contribution | 100% employer | Employee + Employer | Employer/Government |
| Eligibility | 5 years service | From day 1 | Varies by scheme |
| Tax Benefit | Up to ₹20L exempt | EEE (fully exempt) | Partially taxable |
Details: Basic Salary = ₹50,000, DA = ₹10,000, Service = 10 years
Calculation: (₹60,000 × 15 × 10) ÷ 26 = ₹3,46,154
Tax: Fully exempt (below ₹20L limit)
Details: Basic Salary = ₹80,000, Service = 25 years
Calculation: (₹80,000 × 15 × 25) ÷ 30 = ₹10,00,000
Tax: Fully exempt (government employee)
Details: Basic Salary = ₹2,00,000, Service = 30 years
Calculation: (₹2,00,000 × 15 × 30) ÷ 26 = ₹34,61,538
Tax: ₹20L exempt, ₹14,61,538 taxable
If your employer fails to pay gratuity within 30 days, you can take the following steps:
Content Reviewed: December 2024 | Based on: Payment of Gratuity Act, 1972 & Income Tax Act, 1961
Our calculator and information are based on current Indian labor laws and tax regulations. We regularly update our content to reflect the latest amendments.
⚠️ Important Disclaimer: This calculator provides estimates based on standard formulas under the Payment of Gratuity Act, 1972 and prevailing tax laws. Actual gratuity amounts may vary based on your specific employment contract, company policy, state-specific rules, and applicable amendments. The information provided is for educational purposes only and should not be considered as legal or financial advice. Always consult with your HR department, a qualified chartered accountant, or legal advisor for calculations specific to your employment situation and for understanding your exact entitlements.