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Gratuity Calculator

Calculate your gratuity payout. Formula: (Last drawn salary × Years of service × 15) / 26. Capped at ₹20 lakh as per the Payment of Gratuity Act.

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Basic salary + dearness allowance at the time of leaving

years

Minimum 5 years of continuous service required to be eligible

How gratuity is calculated:

Gratuity = (Last drawn salary × Years of service × 15) ÷ 26

Capped at ₹20,00,000 as per the Payment of Gratuity Act, 1972.

Gratuity payable

₹3,23,077

Calculated gratuity₹3,23,077
Tax-exempt (under ₹20L)₹3,23,077
Last drawn salary₹80,000
Years of service7 years

Gratuity is fully tax-exempt up to ₹20L for non-government employees (Section 10(10)).

These calculations are for indicative purposes only. For specific tax planning or filing, please consult a CA.

Frequently asked questions

You are eligible if you have completed at least 5 years of continuous service with the same employer. This applies to establishments with 10 or more employees.

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