Gratuity Calculator
Calculate the statutory gratuity payout due upon leaving an employer after completing 5 or more years of service.
Calculator Inputs
LiveHow to use the Gratuity Calculator
- 1Enter your last drawn monthly Basic Salary + Dearness Allowance (DA).
- 2Enter your completed years of continuous service with the company.
- 3Check eligibility status and see the exact gratuity payout amount.
How Gratuity is Calculated
Under the Payment of Gratuity Act, gratuity is computed as 15 days of wages for every completed year of service, using 26 working days in a month.
Service of 6 months or more in the final year is rounded up to a full year for gratuity calculation.
- 1Gratuity = (15 × 65,000 × 8) / 26
- 2Gratuity = 7,800,000 / 26 = ₹3,00,000
Rules, Assumptions & Statutory Scope
- Uses the statutory 15/26 formula and the calculator’s current ₹20 lakh payout cap.
- The general five-year eligibility rule has statutory exceptions, including death or disablement.
What affects Gratuity results
- Minimum requirement of 5 years continuous service (waived in case of death or disability).
- Statutory tax-free ceiling (currently ₹20 Lakhs).
- Rounding of service years (more than 6 months counts as a full year).
Frequently Asked Questions
What is the minimum service requirement to receive gratuity?
Employees must complete at least 5 years of continuous service with the same employer to become eligible for gratuity.
Is gratuity taxable?
Gratuity received under the Payment of Gratuity Act is exempt from income tax up to a maximum lifetime statutory limit of ₹20 Lakhs.
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