Sensex72,240.26+234.12 (+0.32%)|
Nifty 5021,731.40-45.30 (-0.21%)|
Nifty Bank46,892.15+156.80 (+0.33%)|
USD/INR83.12+0.15 (+0.18%)|

Gratuity Calculator - Calculate Gratuity Amount

Calculate your gratuity amount as per the Payment of Gratuity Act, 1972. Find out how much gratuity you'll receive on retirement or resignation.

Employment Details

₹50,000
₹10K₹2L
10 Years
5 Years40 Years

Covered: Under Payment of Gratuity Act, 1972

📋 Eligibility

  • ✓ Minimum 5 years of service required
  • ✓ Maximum gratuity: ₹20 lakhs
  • ✓ Tax-free up to ₹20 lakhs

Gratuity Amount

Total Gratuity
₹0
Tax Free
Last Salary₹50,000
Years of Service10 Years
Gratuity Amount₹0

💰 Tax Benefit

Gratuity up to ₹20 lakhs is completely tax-free under Income Tax Act.

About Gratuity Calculator

Gratuity is a lump sum payment made by an employer to an employee as a token of appreciation for services rendered. It is governed by the Payment of Gratuity Act, 1972.

Gratuity Calculation Formula:

For employees covered under the Act:
Gratuity = (Last Salary × Years of Service × 15) / 26

For employees not covered:
Gratuity = (Last Salary × Years of Service × 15) / 30

Key Points:

  • Minimum 5 years of continuous service required
  • Maximum gratuity amount is ₹20 lakhs
  • Completely tax-free up to ₹20 lakhs
  • Payable on retirement, resignation, death, or disability