Gratuity Calculator
Calculate your gratuity amount as per the Payment of Gratuity Act, 1972. Know your rightful benefits after years of service.
Enter Your Details
Basic salary + Dearness Allowance (DA)
Most organized sector employees in India are covered under the Act
Your Gratuity Estimate
Total Gratuity Payable
₹5,76,923
Last Drawn Salary:
₹50,000
Years of Service:
15 years 7 months
Covered under Act:
Yes
Service Years Used:
16 years
The maximum gratuity payable under the Act is ₹20,00,000 as of 2023.
Important Information
This calculator provides an estimate of gratuity based on the Payment of Gratuity Act, 1972. The actual amount may vary depending on specific employment terms and conditions.
Key points to remember:
- Gratuity is payable after 5 years of continuous service (except in case of death or disablement)
- For employees covered under the Act: Gratuity = (Last drawn salary × 15/26) × Completed years of service
- Service period exceeding 6 months is rounded up to the next year
- The maximum gratuity amount payable under the Act is ₹20 lakh
- Gratuity received by government employees is fully exempt from tax
- For private sector employees, the least of the following is exempt: Actual gratuity, ₹20 lakh, or 15 days salary for each year of service
Eligibility
Minimum 5 years of continuous service with the same employer
Calculation
(Last salary × 15/26) × Completed years of service
Tax Exemption
Up to ₹20 lakh is exempt from income tax